Broadway Financial Corporation Announces Results for 2nd Quarter 2013

  Broadway Financial Corporation Announces Results for 2nd Quarter 2013

Business Wire

LOS ANGELES -- August 12, 2013

Broadway Financial Corporation (the “Company”) (NASDAQ Capital Market: BYFC),
parent company of Broadway Federal Bank, f.s.b. (the “Bank”), today reported a
net loss of $228 thousand for the second quarter ended June 30, 2013, compared
to net income of $1.7 million for the comparable period in 2012, which
reflected a pre-tax gain of $2.5 million on the sale of our former
headquarters building. After accumulated dividends and discount accretion on
preferred stock, the loss available to common stockholders was $565 thousand,
or $0.29 per diluted common share, compared to income available to common
stockholders of $1.4 million, or $0.81 per diluted common share, for the
second quarter of 2013.

For the six months ended June 30, 2013, the Company reported a net loss of
$844 thousand compared to net income of $1.9 million for the same period in
2012, which reflected the gain from the sale of our former headquarters
building. Loss available to common stockholders for the six months ended June
30, 2013 was $1.5 million, or $0.78 per diluted common share, compared to
earnings of $1.3 million, or $0.73 per diluted common share, for the same
period in 2012.

Excluding the gain of $2.5 million from the sale of our former headquarters
building, the decrease in net income for both the second quarter and first
half of 2013 as compared to the same periods a year ago, primarily reflected
lower net interest income before provision for loan losses, which decreased by
$722 thousand for the second quarter of 2013 and $1.7 million for the first
six months of 2013 as a result of decreases in the Bank’s loan portfolio.

Chief Executive Officer, Wayne Bradshaw stated, “During the first half of
2013, we continued to make significant improvements in our asset quality that
are allowing us to begin refocusing on rebuilding our loan portfolio, as our
capital permits, and generating growth in net interest income. These latest
improvements reflected three bulk loan sales that we completed in the first
six months of 2013: two of which closed during the first quarter, and the
third closed early in the second quarter. In addition, we completed other
sales of problem loans and REO during the second quarter to further reduce
problem assets and position the Bank for growth.

As a result of these loan sales, we reduced our non-performing loans by over
58% from $44.7 million at the end of June 2012 to $18.6 million at June 30,
2013. In addition, we reduced our delinquencies by $32.5 million, or 61.6%,
over the last twelve months, and by $50.5 million, or 71.4%, since the peak
level reached at the end of 2010. Despite the short-term costs associated with
our efforts to cleanse our portfolio, we were able to increase our Tangible
Capital and Tier 1 Core Capital ratios to 9.48%, and our Total Risk Based
Capital ratio to 16.27% as of June 30, 2013.

As part of our strategy to position the Company for profitable growth, we are
also continuing to implement improvements in our operations and processes, and
pursue the completion of our previously announced recapitalization. I am
confident that our strategy is working and will be successful in building the
value of our franchise.”

Second Quarter Earnings Summary

Interest income decreased $1.1 million, or 22%, to $4.1 million for the second
quarter of 2013 from $5.2 million for the second quarter of 2012. The decrease
primarily resulted from a reduction of $81.7 million in the average balance of
loans receivable over the past twelve months, which contributed to a decrease
of $1.3 million in interest income. However, the average yield on our loans
increased from 6.02% for the second quarter of 2012 to 6.17% for the second
quarter of 2013 primarily because certain non-accrual loans were returned to
accruing status during the second quarter of 2013 which resulted in interest
recoveries of $159 thousand. Additionally, the average yield on loans was
improved by the sale of $15.5 million of non-performing loans. The average
yield on total interest-earning assets decreased from 5.25% for the second
quarter of 2012 to 4.79% for the second quarter of 2013, as a higher
percentage of our total interest-earning assets were invested in lower
yielding federal funds sold. Recently we have begun refocusing on loan
originations and rebuilding our loan portfolio to improve the yield on
interest-earning assets and grow total interest income. We intend to finance
loan growth in the near term by using excess federal funds sold.

Interest expense decreased $401 thousand, or 24%, to $1.3 million for the
second quarter of 2013 from $1.7 million for the second quarter of 2012. The
annualized cost of our average interest-bearing liabilities decreased 24 basis
points to 1.56% for the second quarter of 2013 from 1.80% for the same period
a year ago, and resulted in a decrease of $231 thousand in interest expense.
During 2012, we implemented a strategy to improve our net interest margin by
reducing higher costing deposits. We were able to reduce the average cost of
deposits from 1.25% for the second quarter of 2012 to 0.97% for the second
quarter of 2013, which resulted in a decrease of $152 thousand in interest
expense. In addition, we have restructured $20.0 million of FHLB advances in
the second and fourth quarters of 2012 and another $28.0 million at the end of
June 2013. The restructurings of FHLB advances have reduced the average cost
of our FHLB advances by 35 basis points, from 3.03% for the second quarter of
2012, to 2.68% for the second quarter of 2013, and resulted in a decrease of
$71 thousand in interest expense. In addition, our average interest-bearing
liabilities decreased by $45.4 million to $331.3 million during the second
quarter of 2013, as compared to $376.7 million during the comparable period in
2012. The decrease in average interest-bearing liabilities resulted in lower
interest expense of $170 thousand.

Net interest income before provision for loan losses for the second quarter of
2013 was $2.8 million, which represented a decrease of $722 thousand, or 21%,
from the second quarter of 2012. The decrease in net interest income was
primarily attributable to a net decrease of $56.3 million in average
interest-earning assets described above.

We did not record a provision for loan losses during the second quarter of
2013 because we continued to shrink our loan portfolio and substantially
reduced our problem loans. Our total delinquent loans, which include
non-accruing loans and all other loans that are past due at least 30 days,
totaled $20.2 million as of June 30, 2013, as compared to $41.8 million as of
December 31, 2012, $52.7 million as of June 30, 2012 and $70.7 million as of
December 31, 2010. The decrease of $21.6 million in delinquent loans during
2013 was primarily due to sales of $15.5 million of non-performing and
classified loans. Also, the reduction reflected $1.6 million of loans that
were foreclosed and transferred to REO, $1.0 million of loans that were paid
off and $3.5 million of loans that satisfied the conditions to be reclassified
as current. During the second quarter of 2012, we recorded a provision for
loan losses of $102 thousand.

Non-interest income for the second quarter of 2013 decreased $2.5 million from
$2.7 million for the second quarter of 2012 to $254 thousand for the second
quarter of 2013. The decrease of $2.5 million in non-interest income was due
to a gain of $2.5 million from the sale of our headquarters building during
the second quarter of 2012. During the second quarter of 2012, non-interest
income also benefited from a gain of $50 thousand from the sale of securities.
These decreases in non-interest income were partially offset by a gain of $81
thousand from the sale of loans during the second quarter of 2013.

Non-interest expense for the second quarter of 2013 decreased $394 thousand
from $3.6 million for the second quarter of 2012 to $3.2 million for the
second quarter of 2013. The decrease of $394 thousand in non-interest expense
was primarily due to a decrease of $190 thousand in the provision for losses
on loans held for sale, a decrease of $108 thousand in the provision for
losses on REO and a decrease of $43 thousand in compensation and benefits
expense.

Balance Sheet Summary

Total assets were $345.2 million at June 30, 2013, which represented a
decrease of $28.5 million, or 8%, from December 31, 2012 and a decrease of
$45.7 million, or 12%, from June 30, 2012. During the first half of 2013, net
loans decreased by $26.3 million, loans held for sale decreased by $10.0
million, securities decreased by $2.3 million and REO decreased by $2.0
million while cash and cash equivalents increased by $10.1 million and other
assets increased by $2.1 million, primarily reflecting a $3.2 million
receivable for loan payoff proceeds.

Our gross portfolio of loans receivable held for investment decreased by $27.7
million to $235.4 million at June 30, 2013 from $263.1 million at December 31,
2012, primarily due to loan repayments and the transfer of certain loans held
for investment to loans held for sale as we continued to implement our
strategy to sell non-performing and classified loans. The decrease in our loan
portfolio primarily consisted of a decrease of $8.4 million in our commercial
real estate loan portfolio, a decrease of $6.0 million in our church loan
portfolio, a decrease of $5.5 million in our five or more units (multi-family)
residential real estate loan portfolio, a decrease of $5.7 million in our
one-to-four family residential real estate loan portfolio, a decrease of $1.8
million in our commercial loan portfolio, and a decrease of $292 thousand in
our construction loan portfolio. Our gross loan portfolio was $313.2 million
at June 30, 2012.

Loan originations for the six months ended June 30, 2013 totaled $8.4 million,
compared to $11.3 million for the six months ended June 30, 2012. Loan
repayments for the six months ended June 30, 2013 totaled $26.5 million,
compared to $34.7 million for the six months ended June 30, 2012. Loan
charge-offs during the first half of 2013 totaled $1.8 million, compared to
charge-offs of $800 thousand during the first half of 2012. Loans transferred
to REO during the first half of 2013 totaled $1.6 million, compared to $2.7
million during the first half of 2012. Loans transferred to loans held for
sale during the first half of 2013 totaled $6.2 million, which represented
multi-family and commercial real estate loans that we sold in a bulk sale
consummated in the second quarter. There were no loans transferred to loans
held for sale during the first half of 2012.

Gross loans receivable held for sale decreased from $19.4 million at December
31, 2012 to $9.4 million at June 30, 2013. The $10.0 million decrease during
the first half of 2013 was primarily due to the sales of non-performing and
classified loans totaling $15.5 million, repayments of $227 thousand and
charge-offs of $470 thousand, offset in part by the transfer of $6.2 million
of multi-family and commercial real estate loans mentioned above.

Deposits totaled $229.4 million at June 30, 2013, down $27.7 million, or 11%,
from December 31, 2012. During the first half of 2013, certificates of deposit
(“CDs”) decreased by $28.5 million and represented 62% of total deposits at
June 30, 2013, compared to 66% of total deposits at December 31, 2012. Of the
$28.5 million decrease in CDs during the first half of 2013, $21.5 million
represented higher rate deposits from QwickRate, a deposit listing service,
and $599 thousand were from brokered deposits. Additionally, core deposits
(NOW, demand, money market and passbook accounts) increased by $788 thousand
during the first half of 2013 and represented 38% of total deposits at June
30, 2013, compared to 34% of total deposits at December 31, 2012. Brokered
deposits represented 1% of total deposits at June 30, 2013 and December 31,
2012.

Since year-end 2012, FHLB advances remained unchanged at $79.5 million and
were equal to 23% and 21% of total assets at June 30, 2013 and December 31,
2012, respectively. The weighted average cost of advances decreased 20 basis
points from 2.67% at December 31, 2012 to 2.47% at June 30, 2013 as we
restructured $20.0 million of FHLB advances in the second and fourth quarters
of 2012. Also, we restructured $28.0 million of advances in late June 2013,
which will create a benefit primarily in future periods.

Shareholders' equity was $16.6 million, or 4.81% of the Company’s total
assets, at June 30, 2013. The Bank’s Total Risk-Based Capital ratio was
16.27%, its Tier 1 Risk-Based Capital ratio was 14.98%, and its Core Capital
and Tangible Capital ratios were 9.48% at June 30, 2013.

As previously announced, we are pursuing a recapitalization plan to increase
capital and reduce the Company’s debt and senior equity securities. Pursuant
to the terms of the recapitalization that we have negotiated, the Company
would exchange new common stock equivalents in substitution for approximately
$22.7 million of currently outstanding senior debt, preferred stock and
related accumulated dividends, eliminate an estimated $1.7 million of accrued
but unpaid interest on all of the Company’s senior debt, and raise gross
proceeds of $4.2 million from the sale of new common stock. These
transactions, which are still subject to regulatory approvals, would result in
the issuance of approximately 18.2 million shares of common stock and common
stock equivalents, representing approximately 90.5% of the Company’s pro forma
outstanding equity securities.

Asset Quality

Non-performing assets (“NPAs”) include non-accrual loans and REO, and totaled
$24.8 million, or 7.19% of total assets, at June 30, 2013, compared to $48.3
million, or 12.35% of total assets, at June 30, 2012 and $45.3 million, or
12.11% of total assets, at December 31, 2012.

Non-accrual loans were $18.6 million at June 30, 2013, as compared to $37.1
million at December 31, 2012 and $44.7 million at June 30, 2012. These loans
consist of delinquent loans that are 90 days or more past due and troubled
debt restructurings that do not qualify for accrual status. Our non-accrual
loans at June 30, 2013 included 22 church loans totaling $14.1 million, five
multi-family residential real estate loans totaling $2.2 million, nine
one-to-four family residential real estate loans totaling $1.4 million, two
commercial real estate loans totaling $752 thousand, a commercial loan for $97
thousand, and a consumer loan for $69 thousand.

REO decreased by $2.0 million to $6.2 million at June 30, 2013, from $8.2
million at December 31, 2012. At June 30, 2013, the Bank’s REO consisted of
ten commercial real estate properties, five of which are church buildings.
During the first half of 2013, three church loans totaling $1.6 million were
foreclosed and transferred to REO and six REO properties were sold for net
proceeds of $3.3 million and a net gain of $97 thousand.

About Broadway Financial Corporation

Broadway Financial Corporation conducts its operations through its
wholly-owned subsidiary, Broadway Federal Bank, f.s.b., which is the leading
community-oriented savings bank in Southern California serving low to moderate
income communities. We offer a variety of residential and commercial real
estate loan products for consumers, businesses, and non-profit organizations,
other loan products, and a variety of deposit products, including checking,
savings and money market accounts, certificates of deposits and retirement
accounts. The Bank operates three full service branches, two in the city of
Los Angeles, and one located in the nearby city of Inglewood, California.

Shareholders, analysts and others seeking information about the Company are
invited to write to: Broadway Financial Corporation, Investor Relations, 5055
Wilshire Blvd., Suite 500, Los Angeles, CA 90036, or visit our website at
www.broadwayfederalbank.com.

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based upon our management’s current expectations, and involve
risks and uncertainties. Actual results or performance may differ materially
from those suggested, expressed, or implied by the forward-looking statements
due to a wide range of factors including, but not limited to, the general
business environment, the real estate market, competitive conditions in the
business and geographic areas in which the Company conducts its business,
regulatory actions or changes and other risks detailed in the Company’s
reports filed with the Securities and Exchange Commission, including the
Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The
Company undertakes no obligation to revise any forward-looking statement to
reflect any future events or circumstances.

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Financial Condition
                                                        
                                      June 30,
                                          2013                  December 31,
                                      (Unaudited)                 2012     
Assets                                (In thousands except share and per share
                                      amounts)
Cash                                  $   15,188                $  13,420
Federal funds sold                       59,280                 50,940   
Cash and cash equivalents                 74,468                   64,360
                                                                
Securities available-for-sale,            11,117                   13,378
at fair value
Loans receivable held-for-sale,           9,126                    19,051
at lower of cost or fair value
Loans receivable held for
investment, net of allowance of           225,391                  251,723
$10,579 and $11,869
Accrued interest receivable               1,141                    1,250
Federal Home Loan Bank (FHLB)             3,737                    3,901
stock
Office properties and                     2,692                    2,617
equipment, net
Real estate owned                         6,227                    8,163
Bank owned life insurance                 2,722                    2,688
Investment in affordable                  1,418                    1,528
housing limited partnership
Other assets                             7,160                  5,034    
Total assets                          $   345,199              $  373,693  
                                                                
Liabilities and shareholders'
equity
Liabilities:
Deposits                              $   229,365               $  257,071
FHLB advances                             79,500                   79,500
Junior subordinated debentures            6,000                    6,000
Other borrowings                          5,000                    5,000
Accrued interest payable                  2,308                    1,941
Dividends payable                         2,554                    2,104
Advance payments by borrowers             552                      711
for taxes and insurance
Other liabilities                        3,331                  3,359    
Total liabilities                        328,610                355,686  
                                                                
Shareholders' Equity:
Senior preferred, cumulative
and non-voting stock, $0.01 par
value, authorized, issued and
outstanding 9,000 shares of
Series D at June 30, 2013 and             8,963                    8,963
December 31, 2012; liquidation
preference of $10,532 at June
30, 2013 and $10,262 at
December 31, 2012
Senior preferred, cumulative
and non-voting stock, $0.01 par
value, authorized, issued and
outstanding 6,000 shares of
Series E at June 30, 2013 and             5,974                    5,974
December 31, 2012; liquidation
preference of $7,022 at June
30, 2013 and $6,842 at December
31, 2012
Preferred, non-cumulative and
non-voting stock, $.01 par
value, authorized 985,000
shares; issued and outstanding
55,199 shares of Series A,
100,000 shares of Series B and
76,950 shares of Series C at              2,457                    2,457
June 30, 2013 and December 31,
2012; liquidation preference of
$552 for Series A, $1,000 for
Series B and $1,000 for Series
C at June 30, 2013 and December
31, 2012
Preferred stock discount                  (396      )              (598     )
Common stock, $.01 par value,
authorized 8,000,000 shares at
June 30, 2013 and December 31,
2012; issued 2,013,942 shares             20                       20
at June 30, 2013 and December
31, 2012; outstanding 1,917,422
shares at June 30, 2013 and
December 31, 2012
Additional paid-in capital                10,117                   10,095
Accumulated deficit                       (9,484    )              (7,988   )
Accumulated other comprehensive
income, net of taxes of $400 at           172                      318
June 30, 2013 and December 31,
2012
Treasury stock-at cost, 96,520
shares at June 30, 2013 and              (1,234    )             (1,234   )
December 31, 2012
Total shareholders' equity               16,589                 18,007   
                                                                
Total liabilities and                 $   345,199              $  373,693  
shareholders' equity
                                                                
                                                                


BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
                                                                       
                         Three Months ended June 30,             Six Months ended June 30,
                          2013              2012              2013              2012      
                         (In thousands, except share and per share)
Interest income:
Interest and
fees on loans            $ 3,896             $ 5,030             $ 7,783             $ 10,360
receivable
Interest on
mortgage backed            80                  135                 169                 283
and other
securities
Other interest            86                20                134               36        
income
Total interest            4,062             5,185             8,086             10,679    
income
                                                                                     
Interest
expense:
Interest on                582                 880                 1,206               1,855
deposits
Interest on               712               815               1,424             1,648     
borrowings
Total interest            1,294             1,695             2,630             3,503     
expense
                                                                                     
Net interest
income before              2,768               3,490               5,456               7,176
provision for
loan losses
Provision for             -                 102               -                 1,061     
loan losses
Net interest
income after              2,768             3,388             5,456             6,115     
provision for
loan losses
                                                                                     
Non-interest
income:
Service charges            129                 147                 271                 292
Loan servicing             4                   4                   10                  (162      )
fees, net
Net gains on               81                  -                   97                  -
sales of loans
Net gains
(losses) on                (10       )         (17       )         (2        )         395
sales of REO
Gain on sale of
office                     -                   2,523               -                   2,523
properties and
equipment
Gain on sale of            -                   50                  -                   50
securities
Other                     50                17                99                49        
Total
non-interest              254               2,724             475               3,147     
income
                                                                                     
Non-interest
expense:
Compensation and           1,495               1,538               2,949               3,127
benefits
Occupancy                  323                 297                 663                 584
expense, net
Information                206                 239                 423                 452
services
Professional               151                 176                 333                 284
services
Provision for
(recapture of)             (2        )         188                 468                 186
losses on loans
held for sale
Provision for              223                 331                 223                 312
losses on REO
FDIC insurance             190                 216                 392                 433
Office services            116                 108                 221                 217
and supplies
Other                     547               550               1,097             969       
Total
non-interest              3,249             3,643             6,769             6,564     
expense
                                                                                     
Income (loss)
before income              (227      )         2,469               (838      )         2,698
taxes
Income tax                1                 772               6                 847       
expense
Net income               $ (228      )       $ 1,697            $ (844      )       $ 1,851     
(loss)
                                                                                     
Other
comprehensive
income (loss),
net of tax:
Unrealized loss
on securities            $ (128      )       $ (86       )       $ (146      )       $ (79       )
available for
sale
Reclassification
of realized net            -                   (50       )         -                   (50       )
gains included
in net income
Income tax                -                 -                 -                 -         
effect
Other
comprehensive             (128      )        (136      )        (146      )        (129      )
income (loss),
net of tax
                                                                                     
Comprehensive            $ (356      )       $ 1,561            $ (990      )       $ 1,722     
income (loss)
                                                                                     
Net income               $ (228      )       $ 1,697             $ (844      )       $ 1,851
(loss)
Dividends and
discount                  (337      )        (285      )        (652      )        (571      )
accretion on
preferred stock
Income (loss)
available to             $ (565      )       $ 1,412            $ (1,496    )       $ 1,280     
common
shareholders
                                                                                     
Earnings (loss)
per common               $ (0.29     )       $ 0.81              $ (0.78     )       $ 0.73
share-basic
Earnings (loss)
per common               $ (0.29     )       $ 0.81              $ (0.78     )       $ 0.73
share-diluted
Dividends
declared per             $ -                 $ -                 $ -                 $ -
share-common
stock
Basic weighted
average shares             1,917,422           1,744,565           1,917,422           1,744,565
outstanding
Diluted weighted
average shares             1,917,422           1,744,565           1,917,422           1,744,565
outstanding
                                                                                     


BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES
Selected Ratios and Data
(Dollars in thousands)
(Unaudited)
                                                                  
                            As of June 30,
                             2013             2012   
Regulatory Capital
Ratios:
                                                                         
      Core Capital            9.48   %           8.57   %
      Ratio
      Tangible Capital        9.48   %           8.57   %
      Ratio
      Tier 1
      Risk-Based              14.98  %           12.02  %
      Capital Ratio
      Total Risk-Based        16.27  %           13.34  %
      Capital Ratio
                                                                         
Asset Quality Ratios
and Data:
                                                                         
      Non-performing
      loans as a
      percentage
        of total gross
        loans,                7.09   %           12.63  %
        excluding loans
        held for sale
                                                                         
      Non-performing
      assets as a
      percentage
        of total              7.19   %           12.35  %
        assets
                                                                         
      Allowance for
      loan losses as a
      percentage
        of total gross
        loans,                4.49   %           5.70   %
        excluding loans
        held for sale
                                                                         
      Allowance for
      loan losses as a
      percentage
        of
        non-performing
        loans,                63.34  %           45.17  %
        excluding loans
        held for sale
                                                                         
      Allowances for
      losses as a
      percentage
        of
        non-performing        43.86  %           38.71  %
        assets
                                                                         
      Net loan
      charge-offs as a
      percentage of
        average loans
        for six months        0.98   % (A)      0.30   % (A)
        ended June 30
                                                                         
Non-performing assets:
      Non-accrual
      loans
        Loans
        receivable          $ 16,702           $ 39,533
        held for
        investment
        Loans
        receivable           1,905            5,207  
        held for sale
        Total
        non-accrual           18,607             44,740
        loans
      Loans delinquent
      90 days or more         -                  -
      and still
      accruing
      Real estate
      acquired through       6,227            3,530  
      foreclosure
        Total
        non-performing      $ 24,834          $ 48,270 
        assets
                                                                         
                                                                         
                            Three Months ended June 30,       Six Months ended
                                                              June 30,
                             2013             2012        2013      2012  
Performance Ratios:
                                                                         
      Return on               -0.26  % (A)      1.69   % (A) -0.46  %   0.91  %
      average assets
      Return on               -5.43  % (A)      36.54  % (A) -9.77  %   19.97 %
      average equity
      Average equity
      to average              4.72   %           4.62   %     4.76   %   4.56  %
      assets
      Non-interest
      expense to              3.65   % (A)      3.62   % (A) 3.73   %   3.23  %
      average assets
      Efficiency ratio        100.20 %           50.27  %     102.48 %   58.76 %
      (1)
      Net interest            3.23   % (A)      3.45   % (A) 3.10   %   3.52  %
      rate spread (2)
      Net interest            3.27   % (A)      3.53   % (A) 3.15   %   3.60  %
      rate margin (3)
                                                                         
(1)  Efficiency ratio represents non-interest expense (less provision for
      losses) divided by net interest income before provision for loan losses
      plus non-interest income.
(2)  Net interest rate spread represents the difference between the yield on
      average interest-earning assets and the cost of average interest-bearing
      liabilities.
(3)  Net interest rate margin represents net interest income as a percentage of
      average interest-earning assets.
                                                                         
(A)   Annualized
      
      

BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES
Support for Calculations
(Dollars in thousands)
(Unaudited)
                                                                  
                           Three Months ended June 30,           Six Months ended June 30,
                            2013            2012              2013            2012    
  Total assets             $ 345,199         $ 390,931           $ 345,199         $ 390,931
  Total gross
  loans, excluding         $ 235,411         $ 313,094           $ 235,411         $ 313,094
  loans held for
  sale
  Total equity             $ 16,589          $ 19,663            $ 16,589          $ 19,663
  Average assets           $ 356,193         $ 402,066           $ 363,189         $ 406,719
  Average loans            $ 252,608         $ 334,268           $ 263,502         $ 340,035
  Average equity           $ 16,804          $ 18,578            $ 17,276          $ 18,535
  Average
  interest-earning         $ 338,937         $ 395,259           $ 346,715         $ 398,452
  assets
  Average
  interest-bearing         $ 331,342         $ 376,729           $ 337,473         $ 381,359
  liabilities
  Net income               $ (228    )       $ 1,697             $ (844    )       $ 1,851
  (loss)
  Total income             $ 3,022           $ 6,214             $ 5,931           $ 10,323
  Non-interest             $ 3,249           $ 3,643             $ 6,769           $ 6,564
  expense
  Efficiency ratio           100.20  %         50.27   %           102.48  %         58.76   %
  Non-accrual              $ 18,607          $ 44,740            $ 18,607          $ 44,740
  loans
  REO, net                 $ 6,227           $ 3,530             $ 6,227           $ 3,530
  ALLL                     $ 10,579          $ 17,856            $ 10,579          $ 17,856
  Allowance for
  loss on loans            $ 314             $ 628               $ 314             $ 628
  held for sale
  REO-Allowance            $ -               $ 201               $ -               $ 201
  Interest income          $ 4,062           $ 5,185             $ 8,086           $ 10,679
  Interest expense         $ 1,294           $ 1,695             $ 2,630           $ 3,503
  Net interest             $ 2,768           $ 3,490             $ 5,456           $ 7,176
  income
  Net loan
  charge-offs              $ (129    )       $ (2      )         $ 1,290           $ 504
  (recoveries)

Contact:

Broadway Financial Corporation
Wayne-Kent A. Bradshaw, Chief Executive Officer
323-556-3248
or
Brenda J. Battey, Chief Financial Officer
323-556-3264
or
investor.relations@broadwayfederalbank.com
 
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