8-K

UNITED STATES

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): September 19, 2012

BROADWAY FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-27464	95-4547287
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
4800 Wilshire Boulevard, Los Angeles, California		90010
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (323) 634-1700

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On September 19, 2012, Broadway Financial Corporation (the “Company”) issued a Press Release on revised earnings for the quarter ended March 31, 2012. A copy of the Press Release is attached as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release dated September 19, 2012, announcing revised earnings for the quarter ended March 31, 2012.

SIGNATURES

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

	BROADWAY FINANCIAL CORPORATION (Registrant)
Date: September 19, 2012	By	/s/    Samuel Sarpong
		Samuel Sarpong Chief Financial Officer

EX-99.1

Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

Broadway Financial Corporation Announces Revised Net Earnings for

First Quarter Ended March 31, 2012

LOS ANGELES, CA – (BUSINESS WIRE) – September 19, 2012 – Broadway Financial Corporation (the “Company”) (NASDAQ Capital Market: BYFC), parent company of Broadway Federal Bank, f.s.b. (the “Bank”), today announced its revised results for the quarter ended March 31, 2012.

Our previously reported results for the quarter have been revised because some of the provisions that we had included in the results for the first quarter of 2012 are now reflected in our restated results for 2011. In addition, the revision to the results for the first quarter of 2012 reflect conclusions regarding our valuation allowances reached by the Office of the Controller of Currency during its recently completed supervisory examination of the Bank.

Based on these changes, we are reporting net earnings of $154,000 for the first quarter of 2012, whereas previously we had reported a loss of $60,000. In contrast, we reported a net loss of $129,000 for the first quarter of 2011. After deducting preferred dividends and related discount accretion on the Series D and E Perpetual Cumulative Preferred Stock held by the U.S. Department of the Treasury, we are now reporting a loss to common stockholders of $132,000, as compared to a previously announced loss of $346,000 for the first quarter of 2012 and a loss of $412,000 for the first quarter of 2011.

A summary of the effects of these corrections on the Company’s consolidated balance sheet as of March 31, 2012 and consolidated statement of operations for the quarter then ended is included with this release. More detailed information regarding our financial condition at March 31, 2012 and our results of operations for the three months then ended will be contained in our report on Form 10-Q for the first quarter of 2012 to be filed shortly with the Securities and Exchange Commission.

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 www.broadwayfederalbank.com.

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. The Company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances, except to the extent required by law.

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SOURCE: Broadway Financial Corporation

Contact:  Wayne-Kent A. Bradshaw, Chief Executive Officer, (323) 556-3248: or

        Sam Sarpong, Chief Financial Officer, (323) 556-3224; or

        investor.relations@broadwayfederalbank.com

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BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollars in thousands)

	As Originally Announced						As Revised			As Restated
	March 31,						March 31,			December 31,
	2012			Adjustments			2012			2011
ASSETS
Cash	$	13,572		$	—		$	13,572		$	12,127
Federal funds sold		31,605			—			31,605			19,470
Cash and cash equivalents		45,177			—			45,177			31,597
Securities available for sale, at fair value		18,027			—			18,027			18,979
Loans receivable held for sale, net		13,277			(369	)		12,908			12,983
Loans receivable, net of allowance of $17,752 and $17,299		313,276			(3,698	)		309,578			322,770
Accrued interest receivable		1,601			—			1,601			1,698
Federal Home Loan Bank (FHLB) stock, at cost		3,901			—			3,901			4,089
Office properties and equipment, net		4,548			—			4,548			4,626
Real estate owned (REO)		4,335			(377	)		3,958			6,699
Bank owned life insurance		2,629			—			2,629			2,609
Investment in affordable housing partnership		1,629			—			1,629			1,675
Deferred tax assets		828			(56	)		772			850
Other assets		4,155			(23	)		4,132			5,162
Total assets	$	413,383		$	(4,523	)	$	408,860		$	413,737
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	290,352		$	—		$	290,352		$	294,686
Federal Home Loan Bank advances		83,000			—			83,000			83,000
Junior subordinated debentures		6,000			—			6,000			6,000
Other borrowings		5,000			—			5,000			5,000
Advance payments by borrowers for taxes and insurance		335			—			335			813
Other liabilities		5,904			—			5,904			5,962
Total liabilities		390,591			—			390,591			395,461
Stockholders’ Equity:
Senior preferred, cumulative and non-voting stock, $0.01 par value, authorized, issued and outstanding 9,000 shares of Series D at March 31, 2012 and December 31, 2011; liquidation preference of $9,844 at March 31, 2012 and $9,731 at December 31, 2011		8,963			—			8,963			8,963
Senior preferred, cumulative and non-voting stock, $0.01 par value, authorized, issued and outstanding 6,000 shares of Series E at March 31, 2012 and December 31, 2011; liquidation preference of $6,563 at March 31, 2012 and $6,488 at December 31, 2011		5,974			—			5,974			5,974
Preferred, non-cumulative and non-voting stock, $.01 par value, authorized 985,000 shares; issued and outstanding 55,199 shares of Series A, 100,000 shares of Series B and 76,950 shares of Series C at March 31, 2012 and December 31, 2011; liquidation preference of $552 for Series A, $1,000 for Series B and $1,000 for Series C at March 31, 2012 and December 31, 2011		3,657			—			3,657			3,657
Preferred stock discount		(896	)		—			(896	)		(994	)
Common stock, $.01 par value, authorized 8,000,000 shares at March 31, 2012 and December 31, 2011; issued 2,013,942 shares at March 31, 2012 and December 31, 2011; outstanding 1,744,565 shares at March 31, 2012 and December 31, 2011		20			—			20			20
Additional paid-in capital		10,844			—			10,844			10,824
Accumulated deficit		(2,904	)		(4,523	)		(7,427	)		(7,295	)
Accumulated other comprehensive income, net of taxes of $400 at March 31, 2012 and December 31, 2011		578			—			578			571
Treasury stock-at cost, 269,377 shares at March 31, 2012 and December 31, 2011		(3,444	)		—			(3,444	)		(3,444	)
Total stockholders’ equity		22,792			(4,523	)		18,269			18,276
Total liabilities and stockholders’ equity	$	413,383		$	(4,523	)	$	408,860		$	413,737

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BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Earnings (Loss)

(Dollars in thousands, except per share amounts)

	Three Months Ended March 31,
	As  Originally Announced 2012			Adjustments			As Revised 2012			2011
Interest and fees on loans receivable	$	5,330		$	—		$	5,330		$	6,384
Interest on securities		148			—			148			181
Other interest income		16			—			16			9
Total interest income		5,494			—			5,494			6,574
Interest on deposits		975			—			975			1,239
Interest on borrowings		833			—			833			989
Total interest expense		1,808			—			1,808			2,228
Net interest income before provision for loan losses		3,686			—			3,686			4,346
Provision for loan losses		427			532			959			1,240
Net interest income after provision for loan losses		3,259			(532	)		2,727			3,106
Non-interest income:
Service charges		153			—			153			182
Net losses on mortgage banking activities		(166	)		—			(166	)		(25	)
Net gains (losses) on sales of REO		272			140			412			(15	)
Other		24			—			24			39
Total non-interest income		283			140			423			181
Non-interest expense:
Compensation and benefits		1,589			—			1,589			1,809
Occupancy expense, net		287			—			287			354
Information services		213			—			213			227
Professional services		108			—			108			168
Provision for losses on loans held for sale		503			(505	)		(2	)		20
Provision for losses on REO		160			(179	)		(19	)		80
FDIC insurance		217			—			217			283
Office services and supplies		109			—			109			142
Other		419			—			419			419
Total non-interest expense		3,605			(684	)		2,921			3,502
Earnings (loss) before income taxes		(63	)		292			229			(215	)
Income tax expense (benefit)		(3	)		78			75			(86	)
Net earnings (loss)	$	(60	)	$	214		$	154		$	(129	)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities available for sale	$	7		$	—		$	7		$	(15	)
Income tax effect		—			—			—			6
Other comprehensive income (loss), net of tax		7			—			7			(9	)
Comprehensive earnings (loss)	$	(53	)	$	214		$	161		$	(138	)
Net earnings (loss)	$	(60	)	$	214		$	154		$	(129	)
Dividends and discount accretion on preferred stock		(286	)		—			(286	)		(283	)
Loss available to common shareholders	$	(346	)	$	214		$	(132	)	$	(412	)
Loss per common share-basic	$	(0.20	)	$	0.12		$	(0.08	)	$	(0.24	)
Loss per common share-diluted	$	(0.20	)	$	0.12		$	(0.08	)	$	(0.24	)
Dividends declared per share-common stock	$	—		$	—		$	—		$	—
Basic weighted average shares outstanding		1,744,565			—			1,744,565			1,743,965
Diluted weighted average shares outstanding		1,744,565			—			1,744,565			1,743,965

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BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES

Selected Ratios and Data

(Dollars in thousands)

(Unaudited)

	As of March 31,
	2012			2011
Regulatory Capital Ratios:
Core Capital Ratio		7.70	%		8.71	%
Tangible Capital Ratio		7.70	%		8.71	%
Tier 1 Risk-Based Capital Ratio		10.92	%		11.70	%
Total Risk-Based Capital Ratio		12.23	%		12.98	%
Asset Quality Ratios and Data:
Non-performing loans as a percentage of total gross loans, excluding loans held for sale		12.79	%		11.10	%
Non-performing assets as a percentage of total assets		12.57	%		11.52	%
Allowance for loan losses as a percentage of total gross loans, excluding loans held for sale		5.42	%		5.32	%
Allowance for loan losses as a percentage of non-performing loans, excluding loans held for sale		42.39	%		47.93	%
Allowance for losses as a percentage of non-performing assets		36.21	%		40.70	%
Net loan charge-offs (recoveries) as a percentage of average loans for three months ended March 31		0.74	%(A)		0.66	%(A)
Non-performing assets:
Non-accrual loans
Loans receivable, net	$	41,877		$	43,796
Loans receivable held for sale		5,555			5,982
Total non-accrual loans		47,432			49,778
Loans delinquent 90 days or more and still accruing		—			—
Real estate acquired through foreclosure		3,958			5,123
Total non-performing assets	$	51,390		$	54,901
	Three Months ended March 31,
	2012			2011
Performance Ratios:
Return on average assets		0.15	%(A)		(0.11	%)(A)
Return on average equity		3.34	%(A)		(1.55	%)(A)
Average equity to average assets		4.48	%		6.88	%
Non-interest expense to average assets		2.84	%(A)		2.90	%(A)
Efficiency ratio (1)		71.60	%		75.15	%
Net interest rate spread (2)		3.60	%(A)		3.47	%(A)
Net interest rate margin (3)		3.67	%(A)		3.62	%(A)

(1) Efficiency ratio represents non-interest expense divided by net interest income plus non-interest income.

(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(3) Net interest rate margin represents net interest income as a percentage of average interest-earning assets.

(A) Annualized

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BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES

Support for Calculations

(Dollars in thousands)

(Unaudited)

	Three Months ended March 31,
	2012			2011
Total assets	$	408,860		$	476,734
Total gross loans, excluding loans held for sale	$	327,330		$	394,613
Total equity	$	18,269		$	32,558
Average assets	$	411,302		$	482,793
Average loans	$	345,803		$	427,883
Average equity	$	18,424		$	33,201
Average interest-earning assets	$	401,647		$	479,775
Average interest-bearing liabilities	$	386,057		$	444,106
Net earnings (loss)	$	154		$	(129	)
Total income	$	4,109		$	4,527
Non-interest expense	$	2,921		$	3,502
Efficiency ratio		71.60	%		75.15	%
Non-accrual loans	$	47,432		$	49,778
REO, net	$	3,958		$	5,123
ALLL	$	17,752		$	20,991
Allowance for loss on loans held for sale	$	667		$	1,301
REO-Allowance	$	188		$	52
Interest income	$	5,494		$	6,574
Interest expense	$	1,808		$	2,228
Net interest income	$	3,686		$	4,346
Net loan charge-offs (recoveries)	$	644		$	707

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