Broadway Financial in Los Angeles plans to raise nearly $10 million through a private placement.
The $335 million-asset company said in a press release Friday that it intends to sell about 8.9 million shares of common stock, including 1.9 million voting shares. The capital raise requires approval from the Federal Reserve Board to extend the maturity of certain subordinated notes.
"Upon consummation of these transactions, we will have completed the restructuring of the company's balance sheet, enhanced the liquidity of the company and positioned the bank for growth," Wayne Bradshaw, the company's chief executive, said in the release.
The announcement comes a year after Broadway shed roughly $25 million in troubled loans in an effort to boost its asset quality.