Broadway of Los Angeles Replaces Longtime CEO

For the first time in 20 years, Broadway Financial Corp. in Los Angeles has a new chief executive officer.

The $422 million-asset Broadway announced Wednesday that it has promoted President and Chief Operating Officer Wayne-Kent A. Bradshaw to CEO of the company and its thrift subsidiary, Broadway Federal Bank.

Bradshaw replaces Paul C. Hudson, who has served as Broadway's CEO since 1992. Hudson will remain chairman of both the thrift and the holding company.

The move comes at a challenging time for Broadway, which is under orders from its regulators to beef up its capital levels and it reduce its level of problem loans. The thrift, which caters primarily to inner-city neighborhoods, lost nearly $9 million in the first three quarters of 2011 and at Sept. 30, more than 11% of its loans were at least 90 days past due, according to Federal Deposit Insurance Corp. data.

Prior to joining Broadway in early 2009, Bradshaw was a regional president at Washington Mutual Bank and the president and CEO of Family Savings Bank in Los Angeles. He is also a former deputy superintendent at the California Department of Financial Institutions.

In a news release, Broadway's lead director, Virgil Roberts, said that the change at the top would allow both Bradshaw and Hudson to "focus on their respective strengths, with the objective of enhancing [Broadway's] overall performance."

Hudson, he said, would continue to represent Broadway in the communities it serves, while also working to help clean up the thrift's weakened loan portfolio. Bradshaw, Roberts added, "will utilize his extensive and successful turnaround and regulatory experience in a leadership role to improve the Bank's internal operations and restore its financial stability."

Because Broadway is operating under a cease-and-desist order the thrift's regulators must approve any leadership changes. The Federal Reserve has already signed off on the move and the Office of the Comptroller of the Currency has given preliminary approval, Broadway said Wednesday. Final approval from the OCC is expected in March.

Broadway's thinly traded shares were up more than 6% late Wednesday, to $1.50.