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.