Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans

Note 12 – Employee Benefit Plans

Broadway Federal 401(k) Plan

A 401(k) benefit plan allows employee contributions for substantially all employees up to 15% of their compensation, which are matched at a rate equal to 50% of the first 6% of the compensation contributed. Expense totaled $89 thousand and $91 thousand for 2012 and 2011.

ESOP Plan

Employees participate in an Employee Stock Ownership Plan (“ESOP”) after attaining certain age and service requirements. At the end of employment, participants will receive cash or shares at their election for their vested balance. Vesting occurs over seven years. Shares held by the ESOP and allocated to participants were 87,505 at December 31, 2012 and 2011. There are no shares unallocated as of December 31, 2012 and 2011. Dividends on allocated shares increase participant accounts. In addition to shares allocated, the Bank makes discretionary cash contributions to participant accounts. Cash contributions totaled $57 thousand for the year ended December 31, 2012 and $58 thousand for the year ended December 31, 2011. Compensation expense related to the ESOP was $61 thousand for 2012 and $53 thousand for 2011.

Deferred Compensation Plan

The Bank has a deferred compensation agreement with its former Chief Executive Officer (“CEO”) whereby a stipulated amount will be paid to the CEO over a period of 15 years upon his retirement. The amount accrued under this agreement was $921 thousand at December 31, 2012 and $764 thousand at December 31, 2011, and is accrued over the period of active employment. Compensation expense was $157 thousand for 2012 and $150 thousand for 2011.