Broadway of L.A. Warned of Potential Nasdaq Delisting

Broadway Financial (BYFC) of Los Angeles is again facing a possible delisting by the Nasdaq.

The $442 million-asset company said Friday that it had received a warning letter about its failure to meet listing requirements. It has not yet filed its first-quarter results with the Securities and Exchange Commission.

Broadway said in a press release that it is unable to complete its financial statement for the first quarter because it has "not obtained all information needed to comply with the new fair value disclosure requirements." The company said it expects to file the 10-Q form by Thursday.

The company reported on May 15 that its first-quarter loss totaled $60,000, compared with a loss of $129,000 a year earlier. The loss narrowed because of a lower loan-loss provision and reduced compensation and benefits expenses, among other things.

Broadway previously faced delisting when it filed its third-quarter results with the SEC late. Those results were delayed because of unresolved issues tied to "when a payment is due under the tax sharing agreement" between Broadway and its Broadway Federal Bank, among other reasons.

The company is looking to raise capital, and an institutional investor has agreed to swap its preferred shares for common stock. (http://www.americanbanker.com/issues/177_59/broadway-capital-raise-1047855-1.html) The Treasury Department also has agreed to convert its $15 million of preferred shares to common equity at a 50% discount.