Broadway Financial (BYFC) in Los Angeles has unloaded a package of loans in an effort to boost its asset quality.
Broadway said Thursday that its Broadway Federal Bank sold $16 million in loans to a pair of unnamed buyers at an undisclosed price. The sales included $13.1 million of nonperforming loans.
The first sale consisted of $14.1 million of single-family residential mortgages, including $11.8 million in nonperforming loans, removing all nonperforming single-family residential loans from the company's balance sheet. The other sale involved five church loans for $1.8 million.
The $384 million-asset company reduced its nonperforming assets by roughly a third, to $23 million, with the sales. Broadway Financial and its bank have been operating under
"The sales will allow us to refocus our efforts on improving operations, pursuing growth as permitted under our cease-and-desist orders, and completing our previously announced recapitalization," Wayne-Kent Bradshaw, the company's chief executive, said in a press release.
The company disclosed earlier this month that it had terminated its chief financial officer, Samuel Sarpong, on Jan. 31. Brenda Battey, a former senior controller at Bank of Manhattan, was named interim CFO.