This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Broadway Federal Bank, F.s.b. Responds To The Current Economic Climate

Stocks in this article: BYFC

In response to current economic conditions, Broadway Financial Corporation (the “Company”) (NASDAQ Small-Cap:BYFC), parent company of Broadway Federal Bank, f.s.b. (the “Bank”), today announced it will be pursuing a broad recapitalization plan which includes the closing of two retail branch locations. Chairman and CEO Paul C. Hudson stated, “The recapitalization will strengthen the Bank’s capital base and lower fixed costs, which in turn will position the Company for future growth and improved profitability.”

On November 7, 2011, the Bank will close its Wilshire Boulevard and Leimart Park retail branch locations. All services previously offered at these locations will continue to be available at the Bank’s three other locations: Midtown, Inglewood and Exposition Park. All accounts with Broadway Federal Bank, f.s.b. are safe and insured by the Federal Deposit Insurance Corporation to at least $250,000. Additionally, the branch closings are not expected to have a material impact on the Bank’s deposit base.

Hudson explained, “We all must make difficult decisions during these challenging economic times to ensure long term viability and the Bank is not immune from the impact of high unemployment, low consumer confidence and government deficits.” Hudson went on to say, “These changes are designed to help insure that the Bank continues to be a leader in serving the financial needs of low-to-moderate income communities in the Los Angeles area by improving the Bank’s efficiency.”

Broadway Federal Bank f.s.b. will continue to set itself apart from other financial institutions by remaining dedicated to its core values and mission of serving the real estate, business and financial needs of customers in underserved urban communities with a commitment to excellent service, profitability and sustained growth. Furthermore, the recapitalization plan will reinvigorate the broader commitment to employ, train and mentor community residents, to contract for services with community businesses, and to encourage management and staff to serve as volunteers in civic, community and religious organizations.

In addition to consolidating branches, the Company is pursuing a recapitalization plan to raise $10 million to increase the Bank’s capital to better weather the economic storm. With the additional capital, the Bank will be positioned to participate in the future economic growth of low to moderate markets in South Los Angeles. Currently, the low-to-moderate-income population represents more than half of the total population of both the City of Los Angeles and the City of Inglewood.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs