Broadway Financial (BYFC) in Los Angeles reported a quarterly loss as its lending income fell.
The $345 million-asset Broadway lost $228,000 in the second quarter, it announced Monday. It earned $1.7 million in the second quarter of 2012, when it recorded a $2.5 million profit from the sale of its former headquarters.
Net interest income fell 21%, to $2.8 million, as net interest margin fell by 26 basis points, to 3.27%. Broadway's average loans fell 24%, to $253 million.
Broadway's nonperforming assets fell 49%, to $24.8 million, thanks in part to its sales of soured loans. It
It recorded no provision for loan losses for the quarter, after recording a $102,000 provision in the second quarter of 2012. It recovered $129,000 of charged-off loans in the most recent quarter, after recovering $2,000 of loans in the same period in 2012.
Noninterest income fell by 90%, to $254,000, because of the gain on the sale of the company's headquarters a year earlier. Noninterest expense fell 11%, to $3.2 million.
In June, Broadway Financial was