Broadway Financial Corp. in Los Angeles has been released from an enforcement action requiring it to improve its corporate governance.
The consent order, which the $403 million-asset bank entered into with the Office of the Comptroller of the Currency in October 2013, also required Broadway to review its loans, form a compliance committee and prepare a strategic plan.
Broadway announced the termination of the order Monday. A separate cease-and-desist order issued in September 2010 by the OCC's predecessor agency, the Office of Thrift Supervision, is still in effect and being administered by the Federal Reserve Board.
In a press release, Broadway CEO Wayne Bradshaw framed the decision by the OCC as one that allows his bank to increase net interest income and profits by rebuilding its loan portfolio. Two years ago, the company shed almost $25 million in troubled loans to improve asset quality.
Now, it has purchased $100 million of prime single-family residential loans it had committed to buy in September. The company has nearly $110 million in multifamily residential loans and all of them have been originated for its held-for-investment portfolio.