Broadway Financial in Los Angeles Complies with Nasdaq Rules

Broadway Financial Corp. in Los Angeles said Wednesday that it once again complies with Nasdaq listing requirements after filing its third-quarter earnings with the Securities and Exchange Commission.

The $422.2 million asset-company had said that it was late in filing the earnings due to unresolved issues tied to “when a payment is due under the tax sharing agreement” between Broadway and its Broadway Federal Bank, among other things.

The company had also disclosed recently that its third-quarter loss was $7.5 million, up from a loss of $156,000 a year earlier. In the earnings report filed last week, the company said that this increase was due to a higher loan-loss provision on real estate owned, greater income tax provision expense and lower net interest and noninterest income.

The third-quarter loan-loss provision was more than double that of a year earlier, at $3.8 million, due in part to a $3.6 million charge off of a single commercial loan relationship.

The third-quarter net interest income fell 15% from a year earlier, to $4.3 million, due to a drop in average net interest-earning assets. The company said it was working to increase capital ratios by resolving nonperforming assets and constraining asset growth.