statement of condition
Broadway Bank has continued to
achieve strong growth in 2015 for
deposits and loans. On March 31,
deposits totaled $2.76 billion, up
$67 million (+2.5%) from December
and up $198 million (+7.7%) vs.
March 2014. Loans ended the
quarter at $1.43 billion, up $44 million (+3.2%) vs.
December and up $193 million (+16%) vs. a year ago.
Over the past year, we have had double-digit percentage
growth in most loan categories (business, commercial
real estate, construction and residential mortgage).
Our loan growth reflects improved demand driven by
an improving local economy. The recent drop in oil
prices could impact Texas negatively, but we have little
direct exposure to the energy industry. In fact, credit
quality continues to be strong for our portfolio. One
of our biggest challenges, when it comes to loans,
is the intense local competition for quality business,
particularly as it impacts pricing (i.e., loan interest
rates). Rate competition is good for borrowers, but we
believe some of the pricing we are seeing offered by
competitors does not provide an appropriate return
relative to the credit risks taken. At Broadway Bank,
we remain committed to being competitive while also
preserving credit quality and the returns we achieve
relative to risk. In the long run, doing so is in the best
interest of the bank and of the customers we serve.
James D. Goudge
Chairman and CEO