Broadway Financial Corporation Sells $13.1 Million of Non-Performing Loans
Reduces Non-Performing Loans by Almost 31%
LOS ANGELES -- February 20, 2013
Broadway Financial Corporation (the “Company”) (NASDAQ Capital Market: BYFC)
today reported that its wholly-owned subsidiary, Broadway Federal Bank, f.s.b.
(the “Bank”), recently completed the sale of approximately $16 million
principal amount of loans, including $13.1 million of non-performing loans.
The non-performing loans represented approximately 31% of the Bank’s estimated
non-performing loans receivable and non-performing loans held for sale as of
December 31, 2012.
The sales were made in cash transactions with two different buyers: a sale of
approximately $14.1 million of single family residential loans, including
approximately $11.8 million of non-performing single family residential loans
representing substantially all of the Bank’s non-performing single family
residential loans, and a separate sale of five church loans with an aggregate
principal balance of approximately $1.8 million, including four non-performing
church loans with an aggregate principal balance of $1.3 million.
The Company does not expect to take any material charge against net income
because of the sale of these loans.
Chief Executive Officer, Wayne-Kent Bradshaw, stated, “These sales represent a
substantial reduction in our non-performing loans, which will significantly
reduce the time and resources that we devote to managing and monitoring
non-performing loans. Furthermore, the sales will allow us to re-focus our
efforts on improving operations, pursuing growth as permitted under our Cease
and Desist Orders, and completing our previously announced Recapitalization.
In addition, we believe that these sales represent a major step in addressing
regulatory requirements for materially reducing our non-performing loans. With
the sales completed, our non-performing loans have been reduced to
approximately $23 million, or 6.4% of total estimated assets, after adjusting
for the sales, as of December 31, 2012.”
Additional information regarding the loan sales will be made available in the
Company’s Form 10-K for 2012, which the Company expects to file in late March.
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, 4800
Wilshire Blvd., Los Angeles, CA 90010, or visit our website at
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 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, as amended by subsequently filed Forms
10-K/A, and Quarterly Reports on Form 10-Q. The Company undertakes no
obligation to publicly revise any forward-looking statement to reflect any
future events or circumstances.
Broadway Financial Corporation
Wayne-Kent A. Bradshaw, Chief Executive Officer
Brenda Battey, Interim Chief Financial Officer
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