Broadway Financial (BYFC) - 2024 Q2 - Quarterly Results

Financial Performance - Total consolidated net earnings for the second quarter of 2024 were $269 thousand, or$0.03 per diluted share, compared to $243 thousand, or$0.03 per diluted share for the same period in 2023[8]. - For the first six months of 2024, consolidated net earnings were $105 thousand, or$0.01 per diluted share, compared to $1.8 million, or$0.20 per diluted share for the same period in 2023[11]. - Net income for 2024 was $271 million, compared to$246 million in 2023, marking a 10.2% increase[57]. Interest Income and Loans - Total interest income increased by $3.8 million, or 33.1$15,488 million, up from $11,640 million in 2023, representing a 32$650 thousand, or 8.9%, to $7.9 million, compared to$7.3 million for the second quarter of 2023[35]. - Net interest income after provision for credit losses increased to $7,424 million in 2024 from$6,500 million in 2023, a growth of 14.2%[57]. - Loans held for investment increased by $58.3 million to$938.7 million at June 30, 2024, compared to $880.5 million at December 31, 2023, driven by loan originations of$97.0 million[27]. - Loan originations decreased to $25,510 million in 2024 from$63,983 million in 2023, a decline of 60%[57]. Expenses - Non-interest expense for the second quarter of 2024 was $7.3 million, an increase of$859 thousand, or 13.4%, from $6.4 million in the second quarter of 2023[1]. - For the first six months of 2024, non-interest expense totaled$15.1 million, an increase of $2.4 million, or 19.1$12.7 million in the same period last year[24]. - Non-interest expense rose to $7,280 million in 2024 compared to$6,421 million in 2023, reflecting a 13.4% increase[57]. Assets and Deposits - Total gross loans receivable increased by $59.0 million, or 6.6$946.8 million at June 30, 2024, compared to $887.8 million at December 31, 2023[9]. - Total deposits increased by$4.7 million during the first six months of 2024 to $687.4 million, compared to$682.6 million at December 31, 2023[9]. - Deposits increased by $4.7 million to$687.4 million at June 30, 2024, from $682.6 million at December 31, 2023, with a notable increase in Insured Cash Sweep deposits[51]. - Total assets decreased by$8.1 million at June 30, 2024, reflecting a decrease in securities available-for-sale of $55.5 million[50]. Credit Losses and Allowance - The allowance for credit losses increased to$8.1 million as of June 30, 2024, compared to $7.3 million as of December 31, 2023[4]. - The company reported a decrease in provisions for credit losses to$494 thousand for the second quarter of 2024, compared to $768 thousand for the same period in 2023[22]. Tax and Equity - The effective tax rate for the second quarter of 2024 was 35.01$282.3 million, or 20.7% of total assets, as of June 30, 2024, compared to $281.9 million, or 20.5$14.49 at June 30, 2024, down from $14.65 at December 31, 2023[58]. Returns - Return on average assets improved to 0.08% in 2024 from 0.06% in 2023[57]. - Return on average equity increased to 0.38% in 2024 from 0.24% in 2023[57]. Strategic Focus - The company is focused on expanding its community development financial services, particularly in affordable housing and small business support[59].