8-K

                          SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON D.C.  20549




                                       FORM 8-K




                                   CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(D) OF THE
                           SECURITIES EXCHANGE ACT OF 1934



         DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):    JANUARY 9, 1998



                            BROADWAY FINANCIAL CORPORATION
                (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)




        DELAWARE                       0-27464                  95-4547287
(State of other Jurisdiction   (Commission File Number)      (I.R.S. Employer
     of incorporation)                                       Identification No.)




                              4835 West Venice Boulevard
                            Los Angeles, California 90019
             (Address of Principal Executive Offices, Including Zip Code)



                                    (213) 931-1886
                 (Registrant's Telephone Number, Including Area Code)


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ITEM 5.   OTHER EVENTS.

On December 30, 1997, the Registrant issued 32,613 of its Common Shares in
exchange for a portion of its Series A Preferred Stock.  The Common Shares were
issued from the Registrant's shares held as treasury shares.  After the
transaction the total amount of Common Stock outstanding was 863,447 shares.

ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS

     (c)  Exhibits

          See Exhibit Index included herewith.


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                                     SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                     BROADWAY FINANCIAL CORPORATION

                                         /s/ Bob Adkins
Date:   January 9, 1998              By: --------------------------------------
                                         Bob Adkins
                                         Chief Financial Officer and Secretary


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                                    EXHIBIT INDEX

Exhibit No.   Exhibit                     Page No.
- -----------   -------                     --------

99.1          Press Release


                                          4

EX-99.1

NEWS RELEASE

                                   Contact:  Paul C. Hudson, President/CEO
                                             Bob Adkins, CFO
                                             (213) 931-1886
FOR IMMEDIATE RELEASE

                      BROADWAY FINANCIAL CORPORATION ANNOUNCES
               AN INCREASE IN THE NUMBER OF COMMON SHARES OUTSTANDING

Los Angeles, CA, January 9, 1998 -- Broadway Financial Corporation ("Company")
(NASDAQ Small-Cap: BYFC), the holding company of Broadway Federal Bank, f.s.b.
("Bank"), today announced, it has issued 32,613 shares of its Common Stock from
its Common shares held as treasury shares.  The additional shares were issued to
the Automobile Club of Southern California and the Interinsurance Exchange of
The Automobile Club of Southern California in exchange for 35,874 shares of the
Company's Series A Preferred Stock.

Broadway Federal Bank, f.s.b. is a community oriented savings institution which
primarily originates residential mortgage loans in the geographic area known as
South Central Los Angeles, which is its primary market area.  Broadway Federal
conducts its business from three banking offices located in the City of Los
Angeles and a fourth located in nearby Inglewood, California.