Broadway Financial Gets Nasdaq Warning

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Broadway Financial Corp. late Monday disclosed that it received a warning letter from the Nasdaq because the bank holding company had not yet filed its third-quarter earnings report with the Securities and Exchange Commission.

The parent of Broadway Federal Bank said it was unable to complete its 10-Q report because certain issues pertaining to a tax-sharing agreement between the bank and the holding company remain unresolved.

Nasdaq is requiring the bank in the next 60 days to submit a plan for getting back into compliance with its rules for listing on the Small Cap Market.

Broadway, which since the 1940s has primarily served low- to moderate-income African-American residents in South L.A., struggled since the recession with a large percentage of bad real estate loans. The bank in August announced it would close two of its five branches as a cost-cutting measure.

Broadway shares were unchanged at $1.84 in Monday trading.

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