US Department of the Treasury Announces Broadway as a Recipient of Investments under Emergency Capital Investment Program
LOS ANGELES, December 17, 2021– (COMMERCIAL THREAD) – Broadway Financial Corporation (“Broadway”, “we” or the “Company”) (NASDAQ Capital Market: BYFC), announced that the United States Department of the Treasury (the “United States Treasury”) has notified Broadway that the Company is eligible to receive an equity investment of $ 142.5 million from the US Treasury pursuant to the Emergency Capital Investment Program (“ECIP”).
Under the ECIP, the US Treasury will invest more than $ 8.7 billion in 186 community development finance institutions and minority depositories to provide funding to these institutions to improve access to capital. small businesses and minority consumers in traditionally underserved markets, such as moderate-income communities. To read the Treasury Department press release, click here: https://home.treasury.gov/news/press-releases/jy0530
The investment in Broadway is expected to be in the form of senior perpetual non-cumulative preferred shares with a dividend rate of between 0.5% and 2% per annum which is dependent on Broadway’s investment of the product in the target communities. in certain types of loans that are consistent with the types of loans that the Company has historically taken out. The investment is subject to the completion of satisfactory documentation and is intended to qualify as Level 1 capital. As at September 30, 2021, Broadway’s equity was $ 143.3 million, or $ 13.3 million. 48% of the company’s assets, and Tier 1 capital of its banking subsidiary, City First Bank, National Association, was $ 98 million.
CEO Brian Argrett commented, “We are delighted to announce that our application to participate in ECIP has been approved by the US Treasury. This investment will dramatically improve our ability to advance our mission and multiply the impact and loans we can make in the low to moderate income communities we serve, as well as dramatically increase the scale of our operations and improve the economy of our business. “
Broadway Financial Corporation, a banking holding company, and its wholly owned banking subsidiary, City First Bank, National Association (the “Bank”), are collectively referred to as CityFirstBroadway. CityFirstBroadway is a leading provider of financial products and services to economically underserved urban communities. The Bank offers a variety of commercial loan products, services, and deposit accounts that support investments in affordable housing, small businesses, and non-profit community facilities located in low to moderate income neighborhoods. The Bank is a CDFI, MDI, Certified B Corp and member of the Global Alliance of Banking on Values, entities whose values are aligned with sustainable solutions, healthier families and more prosperous communities for our collective well-being. . CityFirstBroadway has branches serving the Washington, DC and Southern California metro areas. For more information, please visit us at cityfirstbank.com
Caution regarding forward-looking information
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “expect”, “estimate”, “Project,” “budget”, “plan”, “anticipate”, “intend to”, “plan”, “power”, “power”, “could”, “should”, “believe”, “predicted” “,”, Continue “and similar expressions, but the absence of such words or expressions does not mean that a statement is not forward-looking. These forward-looking statements are based on the current expectations of our management and involve risks and known and unknown uncertainties. Actual results or performance may differ materially from those suggested, expressed or understood. nextended by forward-looking statements due to a wide variety of factors. These risk factors include, but are not limited to: uncertainty about the duration, scope and impacts of the COVID-19 pandemic; political and economic uncertainty, including the possibility of deteriorating global economic conditions or the stability of credit and financial markets; changes in the monetary and fiscal policies of the United States government, including the policies of the United States Department of the Treasury and the United States Federal Reserve; changes in laws, regulations, policies or administrative practices, whether by judicial, governmental or legislative action, and other changes relating to banking, securities, taxation, accounting and to financial reporting, and to environmental protection and our ability to comply with such changes in a timely manner; the possible effects of changes in real estate markets and interest rates, which may affect our net income and future cash flows, or the market value of our assets, including investment securities; risks relating to disruption of management time as a result of integration activities related to the merger of Broadway with CFBanc Corporation (the “Merger”); the risk of possible adverse decisions, judgments, settlements and other issues of litigation; the risk that the Merger may adversely affect our ability to retain customers, retain and hire key personnel and on our results of operations and business in general; the risk that problems arise during the successful integration of the activities of the pre-merger companies, which could cause the combined company not to operate as efficiently as expected, or that we may not be able to integrate successfully pre-merger activities – Merger companies; the risk that we may not be able to realize synergies or other anticipated benefits of the Merger or that it will take longer than expected to realize such synergies or benefits; the risk that operational problems arising from, and / or capital expenditures necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are heavily dependent, and other important factors which could cause actual results to differ materially from those projected. All of these factors are difficult to predict and are beyond our control. Additional factors that could cause the results to differ materially from those described above can be found in our annual reports on Form 10-K, Quarterly reports on Form 10-Q, Current reports on Form 8 -K or other documents filed with the SEC and are available on our website at http://www.cityfirstbank.com/node/430 and on the SEC website at http://www.sec.gov.
The forward-looking statements in this press release speak only as of the date on which they are made, and we do not undertake, and do not intend, to update these forward-looking statements to reflect any events or circumstances arising after the date of this press release, except to the extent required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
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Brenda J. Battey, Chief Financial Officer, (323) 556-3264
Gloria Nauden, Vice President of Marketing and Communications, (202) 528-9005