Broadway Financial has stated that excluding the effect of a $246,000 reversal of a bonus accrual in fourth quarter 2006, net earnings for the fourth quarter 2007 were up $53,000, or 12.59%, when compared to the fourth quarter 2006 adjusted net earnings of $421,000, or $0.22 per diluted share.
Net interest income before provision for loan losses of $2.9 million in the fourth quarter of 2007 was up $365,000, or 14.27%, from the fourth quarter a year ago. The increase reflected a higher level of average interest-earning assets which more than offset the impact of an eight basis point decline in the net interest rate margin.
For the year 2007, net interest income before provision for loan losses totaled $11.1 million, up $1.3 million, or 13%, from a year ago. This increase reflected a $29.3 million, or 10.50%, increase in our average interest-earning assets and an eight basis point improvement in the net interest rate margin.
Paul Hudson, CEO of Broadway Financial, said: Contrary to industry trends, the bank is maintaining excellent credit quality while gradually improving net interest margin. The bank is experiencing consistent growth in originating quality earning assets that is propelling increases in net interest income. The bank is positioned to gain from continued loan growth and margin improvement.
