Broadway Financial Corporation (the “Company”) (NASDAQ Capital Market:
BYFC), parent company of Broadway Federal Bank, f.s.b. (the “Bank”, and
collectively with the Company, “Broadway”), today reported that the
Bank’s primary regulator, the Office of the Comptroller of the Currency
(“OCC”), has informed Broadway that it has terminated the Consent Order
applicable to the Bank. This decision follows a full regulatory review
of the Bank that the staff of the OCC completed this past summer. The
Consent Order, which was entered into by the Bank with the OCC in
October 2013, superseded an Order to Cease and Desist that the Bank
entered into with the OCC’s predecessor regulatory organization in
September 2010. The regulatory order from the Federal Reserve Board for
the Company remains in effect.
Chief Executive Officer, Wayne Bradshaw commented, “This decision by the
OCC officially recognizes that Broadway has re-established its position
as a safe and sound financial institution. In addition, it acknowledges
the success that our team has achieved in generating profits,
eliminating problem assets, re-building a quality loan portfolio, and
accomplishing our stated goals.
“As mentioned in our press release announcing results for the third
quarter, we began 2015 with two primary objectives: (i) establishing
Broadway as a leading lender for multi-family residential properties in
Southern California, particularly properties within our core market of
low-to-moderate income communities; and (ii) obtaining rescission of the
regulatory orders and related restrictions that have impacted our
business for over five years. With this decision by the OCC we believe
that we have accomplished these goals for the Bank. As a result, we can
now focus on growing our loan portfolio, which will improve our ability
to increase net interest income, enhance our efficiency, and expand our
profits.
“In a related matter, I wish to announce that we have completed the
purchase of $100 million of prime single family residential loans that
the Bank had committed to purchase in September. This purchase will help
us grow our core earnings and diversify our portfolio mix. Year-to-date
we have originated almost $110 million of multi-family residential
(“MFR”) loans and since September 30, all MFR loans have been originated
for our held-for-investment portfolio.
“Finally, I wish to acknowledge the dedication, commitment to
excellence, and perseverance of our employees whose efforts are
responsible for this decision by the OCC, and to the patience of our
stockholders who have supported us throughout the long process of
re-establishing Broadway as a safe and sound financial institution.”
About Broadway Financial Corporation
Broadway Financial Corporation conducts its operations through its
wholly-owned subsidiary, Broadway Federal Bank, f.s.b., which is the
leading community-oriented savings bank in Southern California serving
low-to-moderate income communities. We offer a variety of residential
and commercial real estate loan products for consumers, businesses, and
non-profit organizations, other loan products, and a variety of deposit
products, including checking, savings and money market accounts,
certificates of deposits and retirement accounts. The Bank operates
three full service branches, two in the city of Los Angeles, and one
located in the nearby city of Inglewood, California.
Shareholders, analysts and others seeking information about the Company
are invited to write to: Broadway Financial Corporation, Investor
Relations, 5055 Wilshire Blvd., Suite 500, Los Angeles, CA 90036, or
visit our website at www.broadwayfederalbank.com.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based upon our management’s current
expectations, and involve risks and uncertainties. Actual results or
performance may differ materially from those suggested, expressed, or
implied by the forward-looking statements due to a wide range of factors
including, but not limited to, the general business environment, the
real estate market, competitive conditions in the business and
geographic areas in which the Company conducts its business, regulatory
actions or changes, risks associated with the Company’s efforts to
implement new digital platforms for our customers, reduce problem assets
and control expenses, and other risks detailed in the Company’s reports
filed with the Securities and Exchange Commission, including the
Company’s Annual Reports on Form 10-K and 10-K/A and Quarterly Reports
on Form 10-Q. The Company undertakes no obligation to revise any
forward-looking statement to reflect any future events or circumstances,
except to the extent required by law.
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