Los Angeles Business Journal

Broadway Financial Reports Loss

Tuesday, August 13, 2013

Broadway Financial Corp. again reported a quarterly loss as the struggling bank holding company continued to recover from the financial downturn.

After the markets closed on Monday, the parent of Broadway Federal Bank reported a net loss of $228,000 in the second quarter, compared with net income of $1.7 million in the same period a year earlier. The company, which has reported losses for several quarters since the recession, showed a slightly profit in the year-earlier quarter from a pre-tax gain of $2.5 million on the sale of its former headquarters building.

The company has been selling off problem loans and making other changes to improve its financials, reducing the number of non-performing loans by more than 58 percent from a year ago to $18.6 million. Interest income fell 22 percent to $4.1 million as the size of its loan portfolio decreased.

The company did not record a provision for loan losses in the quarter.

Chief Executive Wayne Bradshaw said the company in the first half of this year 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.”

Shares on Tuesday were unchanged at 76 cents on the Nasdaq.