Broadway Financial's (BYFC) woes continued as the Los Angeles company said that its financial results for 2011 and the first quarter of this year will have to be revised and could no longer be trusted.
The $413 million-asset parent of Broadway Federal Bank is revising its 2011 earnings to reflect the impact on its fourth-quarter results of updated valuations on collateral for some impaired loans, the company said in a filing with the Securities and Exchange Commission Tuesday.
In its most recent examination, the bank was also told by its regulator, the Office of the Comptroller of the Currency, that it would need to increase its allowance for loan losses for the quarter that ended March 31 by a "substantial amount."
Broadway reported a loss of $10.6 million last year and a loss of $346,000 in this year's first quarter.
Broadway has failed to file its financial results with the SEC on time twice in the last year. In May the company was warned that it was facing a possible delisting from the Nasdaq because it had not filed its first-quarter results. Broadway still hasn't filed that report with the SEC but did provide a summary of its results in a May press release.
Broadway said it expects to file updated financial statements with the SEC within the next few weeks.