Broadway Financial Corp., the Mid-Wilshire parent of Broadway Federal Bank, has announced it completed a long-planned recapitalization.
The bank holding company said Thursday it exchanged millions of new shares to holders of preferred stock, including the U.S. Treasury, and to new investors who poured $4.2 million of new capital into Broadway. The bank also issued shares to a bank as repayment for about half of a $5 million debt.
Shares issued in the recapitalization are common stock equivalents that will convert to common shares pending approval from existing shareholders. Broadway announced its recapitalization plan in 2010, the same year regulators ordered the bank to raise additional capital.
Wayne-Kent Bradshaw, Broadway’s chief executive, said the bank will continue to work to get out from under regulatory orders and pursue growth.
“Consummation of the recapitalization represents a major milestone in our overall plan to return the company to a healthy financial position capable of producing profitable growth for our investors,” Bradshaw said in a statement.
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