UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                                   FORM 10-QSB
(Mark One)

[X]                QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2003

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE  EXCHANGE ACT

               For transition period from__________ to___________

                         Commission file number 0-27464

                         BROADWAY FINANCIAL CORPORATION
                         ------------------------------
          (Exact name of small business issuer as specified in its charter)

                  Delaware                             95-4547287
         (State or other jurisdiction      (IRS Employer Identification No.)
      of incorporation or organization)

             4800 Wilshire Boulevard, Los Angeles, California 90010
                    (Address of principal executive offices)

                                 (323) 634-1700
                (Issuer's telephone number, including area code)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [x] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest  practicable  date:  1,820,934 shares of the Company's
Common Stock, par value $0.01 per share,  were issued and outstanding as of July
31, 2003.

Transitional Small Business Disclosure Format (Check one):

Yes [ ]  No [x]


                                       1
<PAGE>



                                      INDEX



                                                                          Page
PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

                  Consolidated Balance Sheets (unaudited)
                  as of June 30, 2003 and December 31, 2002                 3

                  Consolidated Statements of Operations and
                  Comprehensive Earnings (unaudited) for the
                  three and six months ended June 30, 2003 and 2002         4

                  Consolidated Statements of Cash Flows (unaudited)
                  for the six months ended June 30, 2003 and 2002           5

                  Notes to Consolidated Financial Statements                7

         Item 2.  Management's Discussion and Analysis of
                  Financial Condition and Results of Operations            10

         Item 3.  Disclosure Controls and Procedures                       15

PART II. OTHER INFORMATION

         Item 1.  Legal Proceedings                                        16

         Item 2.  Changes in Securities and Use of Proceeds                16

         Item 3.  Defaults Upon Senior Securities                          16

         Item 4.  Submission of Matters to a Vote of Security Holders      16

         Item 5.  Other Information                                        16

         Item 6.  Exhibits and Reports on Form 8-K                         16



                                       2
<PAGE>



ITEM 1.  FINANCIAL STATEMENTS

                         BROADWAY FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                (Dollars in thousands, except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                             June 30,   December 31,
                                                                               2003        2002

Assets:

<S>                                                                            <C>      <C>
Cash                                                                           3,516    $   3,859
Federal funds sold                                                             1,600        1,500
Interest bearing deposits                                                          -        1,028
Investment securities held to maturity                                         2,000        2,000
Investment securities available for sale                                       2,000        5,007
Mortgage-backed securities held to maturity                                    8,446       10,843
Mortgage-backed securities available for sale                                 36,276       27,697
Loans receivable, net                                                        152,911      140,085
Loans receivable held for sale,
  at lower of cost or fair value                                                 142        3,770
Accrued interest receivable                                                    1,408          995
Investments in capital stock of Federal Home
  Loan Bank, at cost                                                           1,657        1,561
Office properties and equipment, net                                           5,751        5,811
Other assets                                                                     786          750

Total assets                                                               $ 216,493    $ 204,906

Liabilities and stockholders' equity

Deposits                                                                     163,532    $ 156,148
Advances from Federal Home Loan Bank                                          32,130       28,724
Advance payments by borrowers for taxes and insurance                            244          311
Deferred income taxes                                                          1,085          931
Other liabilities                                                              1,697        1,871

Total liabilities                                                            198,688      187,985

Stockholders' Equity:
  Preferred  non-convertible, non-cumulative, and non-
   voting stock,$.01 par value, authorized 1,000,000 shares;
   issued and outstanding 55,199 shares of Series A and
   100,000 of Series B at June 30, 2003 and December 31, 2002                      2            2
  Common stock, $.01 par value, authorized 3,000,000 shares;
   issued and outstanding 1,819,934 shares at June 30, 2003
   and 1,815,294 shares at December 31, 2002                                      10           10
  Additional paid-in capital                                                  10,528       10,512
   Accumulated other comprehensive income, net of taxes                          307           57
   Retained earnings-substantially restricted                                  7,552        7,005
   Treasury stock-at cost, 49,008 shares at June 30, 2003 and
    53,648 shares at December 31, 2002                                          (475)        (520)
   Unearned Employee Stock Ownership Plan shares                                (119)        (145)

Total stockholders' equity                                                    17,805       16,921

Total liabilities and stockholders'  equity                                $ 216,493    $ 204,906

</TABLE>

    See accompanying notes to the unaudited consolidated financial statements


                                       3
<PAGE>


                         BROADWAY FINANCIAL CORPORATION
                                AND SUBSIDIARIES
        Consolidated Statements of Operations and Comprehensive Earnings
                (Dollars in thousands, except per share amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                        Three Months Ended        Six Months Ended
                                                             June 30,                  June 30,
                                                         2003         2002        2003        2002

<S>                                                      <C>         <C>         <C>         <C>
Interest on loans receivable                             $2,569      $2,752      $5,113      $5,576
Interest on investment securities held to maturity           28          40          58          89
Interest on investment securities available for sale          9          50          45          90
Interest on mortgage-backed securities                      404         202         808         404
Other interest income                                        37          49          75          94

Total interest income                                     3,047       3,093       6,099       6,253


Interest on deposits                                        764         966       1,585       2,013
Interest on borrowings                                      186         122         362         251

Total interest expense                                      950       1,088       1,947       2,264

Net interest income before provision for loan losses      2,097       2,005       4,152       3,989

Provision for loan losses                                     -           -           -           -

Net interest income after provision for loan losses       2,097       2,005       4,152       3,989

Non-interest income:
     Service charges                                        331         206         601         432
     Gain on loans receivable held for sale                   5           1          18           -
     Other                                                   10          14          16          25
Total non-interest income                                    346         221         635         457

Non-interest expense:
     Compensation and benefits                            1,020         876       1,934       1,804
     Occupancy expense, net                                 251         272         509         513
     Information services                                   126         145         256         279
     Professional services                                  107         106         268         199
     Office services and supplies                           108          94         210         173
     Other                                                  249         200         433         391
Total noninterest expense                                 1,861       1,693       3,610       3,359

Earnings before income taxes                                582         533       1,177       1,087

Income taxes                                                226         211         457         439

Net earnings                                           $    356      $  322      $  720      $  648

Other comprehensive income:
  Unrealized gain on securities available for sale          387      $   47      $  404      $   37
  Income tax expense                                       (153)        (20)       (154)        (15)
Other comprehensive income                                  234          27         250          22

Comprehensive earnings                                 $    590      $  349      $  970      $  670

Net earnings                                           $    356      $  322      $  720      $  648
Dividends paid on preferred stock                           (19)         (7)        (38)        (14)

Earnings available to common shareholders              $    337      $  315      $  682      $  634

Earnings per share-basic                                  $0.19       $0.18       $0.38       $0.36
Earnings per share-diluted                                $0.18       $0.18       $0.36       $0.35
Dividend declared per share-common stock                  $0.04       $0.03       $0.08       $0.05
Basic weighted average shares outstanding             1,794,153   1,780,568   1,790,925   1,781,444
Diluted weighted average shares outstanding           1,889,532   1,805,716   1,884,063   1,804,154

</TABLE>

    See accompanying notes to the unaudited consolidated financial statements


                                       4
<PAGE>


                                   BROADWAY FINANCIAL CORPORATION
                                          AND SUBSIDIARIES
                                Consolidated Statements of Cash Flows
                                       (Dollars in thousands)
                                             (Unaudited)
<TABLE>
<CAPTION>

                                                                        Six months ended June 30,
                                                                          2003             2002

Cash flows from operating activities
<S>                                                                  <C>              <C>
Net earnings                                                         $       720      $       648

Adjustments to reconcile net earnings to net cash provided by
  operating activities:
    Depreciation                                                             183              216
    Amortization of premiums and discounts on loans purchased                 63             (110)
    Amortization of net deferred loan origination fees                       (29)            (175)
    Amortization of discounts and premium on  investment securities
      and mortgage-backed securities                                         (28)              83
    Amortization of deferred compensation                                     63               42
    Gain on sale of securities available for sale                              -               (5)
    Gain on sale of loans receivable held for sale                           (18)               -
    Loss on disposal of fixed assets                                           -               63
    Loans originated for sale                                               (622)            (557)
    Proceeds from sale of loans receivable held for sale                   1,081              645
    Changes in operating assets and liabilities:
      Accrued interest receivable                                           (413)               8
      Other assets                                                           (36)             (31)
      Other liabilities                                                     (174)             352

Net cash provided by operating activities                                    790            1,179

Cash flows from investing activities
Loans originated, net of refinances                                      (18,615)         (12,002)
Principal repayment on loans                                              23,117           14,994
Purchase of loans                                                        (14,175)               -
Purchases of investment securities held to maturity                            -           (2,000)
Purchases of investment securities available for sale                    (21,000)          (8,028)
Purchases of mortgage-backed securities held to maturity                       -           (2,093)
Purchases of mortgage-backed securities available for sale               (12,000)               -
Proceeds from maturities of interest bearing deposits                      1,028            2,026
Proceeds from maturities of mortgage-backed securities held
  to maturity                                                              2,300            2,291
Proceeds from sale of securities available for sale                       24,002            4,005
Proceeds from principal paydowns of mortgage-backed securities
  available-for-sale                                                       3,955                -
Purchase of Federal Home Loan stock                                          (96)             (40)
Capital expenditures for office properties and equipment                    (123)            (181)

Net cash used in investing activities                                    (11,607)          (1,028)

</TABLE>

      See accompanying notes to unaudited consolidated financial statements


                                       5
<PAGE>


                         BROADWAY FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                Consolidated Statements of Cash Flows (continued)
                             (Dollars in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                        Six months ended June 30,
                                                                          2003             2002

Cash flows from financing activities
<S>                                                                        <C>               <C>
Net increase (decrease) in deposits                                        7,384             (175)
Increase (decrease) in advances from Federal Home Loan Bank                3,406             (250)
Dividends paid                                                              (173)            (102)
Purchases of treasury stock                                                    -              (84)
Stock option exercised                                                        24                -
Increase (decrease) in advances by borrowers
  for taxes and insurance                                                    (67)              38

Net cash provided by (used in) financing activities                       10,574             (573)
Net decrease in cash and cash equivalents                                   (243)            (422)
Cash and cash equivalents at beginning of period                           5,359            5,239
Cash and cash equivalents at end of period                           $     5,116      $     4,817

Supplemental disclosures of cash flow information:

Cash paid for interest                                               $     1,932      $     2,387
Cash paid for income taxes                                                   377              309

Supplemental disclosure of non-cash investing and
    financing activities:
Transfer of loans to real estate acquired through foreclosure                  -              107
Transfer of loans held for sale to loans held for investment               3,184                -

</TABLE>

      See accompanying notes to unaudited consolidated financial statements


                                       6
<PAGE>


                 BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2003


NOTE (1)  -  Basis of Financial Statement Presentation

The  unaudited  consolidated  financial  statements  included  herein  have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America for interim  financial  statements  and pursuant to the
instructions for Form 10-QSB and the rules and regulations of the Securities and
Exchange  Commission.  In the opinion of the  management  of Broadway  Financial
Corporation  (the "Company"),  the preceding  unaudited  consolidated  financial
statements  contain  all  material  adjustments,  consisting  solely  of  normal
recurring  accruals,  necessary  to present  fairly the  consolidated  financial
position of the Company and its  subsidiaries  at June 30, 2003,  the results of
their operations and  comprehensive  earnings for the three and six months ended
June 30,  2003 and 2002 and their cash  flows for the six months  ended June 30,
2003 and 2002. These unaudited  consolidated financial statements do not include
all disclosures  associated  with the Company's  consolidated  annual  financial
statements  included  in its  annual  report on Form  10-KSB  for the year ended
December  31, 2002 and,  accordingly,  should be read in  conjunction  with such
audited  financial  statements.  The results of operations for the three and six
months ended June 30, 2003 are not  necessarily  indicative of the results to be
expected for the full year.

NOTE (2) - Earnings Per Share

Basic  earnings per share is  determined  by dividing net earnings  available to
common  shareholders  by the weighted  average  number of shares of Common Stock
outstanding for the period  (1,794,153 and 1,780,568 shares for the three months
ended June 30, 2003 and 2002,  and  1,790,925  and  1,781,444 for the six months
ended  June 30,  2003 and 2002,  respectively).  Diluted  earnings  per share is
determined  by dividing net earnings  available  to common  shareholders  by the
weighted  average number of shares of Common Stock  outstanding  for the period,
adjusted for the dilutive  effect of Common Stock  equivalents,  (1,889,536  and
1,805,716  shares  for the  three  months  ended  June 30,  2003 and  2002,  and
1,884,063  and  1,804,154  for the six  months  ended  June 30,  2003 and  2002,
respectively).

NOTE (3) - Cash and Cash Equivalents

For purposes of reporting  cash flows in the  "Consolidated  Statements  of Cash
Flows", cash and cash equivalents include cash and federal funds sold.


                                       7
<PAGE>


                 BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES
         NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS -CONTINUED
                                  JUNE 30, 2003


NOTE (4) - Current Accounting Pronouncements

In April 2003,  the FASB issued  Statement  of  Financial  Accounting  Standards
("SFAS") No. 149,  "Amendment  of Statement 133 on  Derivative  Instruments  and
Hedging  Activities" ("SFAS 149"). SFAS 149 amends and clarifies  accounting for
derivative  instruments,  including certain derivative  instruments  embedded in
other contracts, and for hedging activities under SFAS 133. In particular,  SFAS
149 clarifies under what circumstances a contract with an initial net investment
meets the  characteristic  of a  derivative  and when a  derivative  contains  a
financing  component  that warrants  special  reporting in the statement of cash
flows.  SFAS 149 is generally  effective for contracts  entered into or modified
after June 30, 2003.  Management  anticipates the adoption of SFAS 149 will have
no impact on the Company's consolidated financial statements.

In May 2003,  the FASB issued  Statement of Financial  Accounting  Standards No.
150, "Accounting for Certain Financial  Instruments with Characteristics of both
Liabilities  and Equity"  ("SFAS 150") which  establishes  standards  for how an
issuer   classifies   and   measures   certain   financial    instruments   with
characteristics  of both  liabilities and equity that have been presented either
entirely as equity or between the liabilities  section and equity section of the
statement of financial position. SFAS 150 is effective for financial instruments
entered into or modified  after May 31, 2003,  and otherwise is effective at the
beginning of the first interim period beginning after June 15, 2003.  Management
anticipates  the  adoption  of SFAS 150 will  have no  impact  on the  Company's
consolidated financial statements.

NOTE (5) - Stock-based Compensation Plans

The Company has stock-based  compensation plans (the "Plans"), which provide for
the granting of stock options, stock appreciation rights and restricted stock to
employees and directors.  The Plans authorize 430,638 shares (adjusted for stock
dividends  and splits) of Common  Stock to be available  for issuance  under the
Plans.  Stock  options  granted  under the Plans are  exercisable  over  vesting
periods specified in each Plan and, unless exercised,  the options terminate ten
years from the date of the grant. The option price must be no less than the fair
market value of the  underlying  shares on the date the options are granted.  At
June 30,  2003,  the  Company had 49,008  shares of  treasury  stock that may be
issued on the exercise of options or for payment of other awards.

                                       8
<PAGE>


The Company measures its employee  stock-based  compensation  arrangements under
the provisions of Accounting  Principles  Board Option No. 25,  "Accounting  for
Stock Issued to Employees ("APB 25").  Accordingly,  no compensation expense has
been  recognized  for the Plans,  as stock options were granted at fair value at
the date of grant. Had compensation  expense for the Plans been determined based
on the fair value  method  provision of the  Statement  of Financial  Accounting
Standards No. 123 "Accounting for Stock-Based Compensation" for previous awards,
the Company's net earnings and earnings per share would have been reduced to the
pro forma amounts indicated for the quarters below:

<TABLE>
<CAPTION>
                                             Three months ended     Six months ended
                                             June 30, June 30,     June 30,  June 30,
                                               2003     2002         2003      2002
                                            --------  --------     --------  --------
  Net Earnings:
<S>                                         <C>       <C>          <C>       <C>
     As reported                            $356,000  $322,000     $720,000  $648,000
     Deduct stock-based compensation,
     net of tax                               12,000     7,000       33,000    14,000
                                            --------  --------     --------  --------
     Pro forma                              $344,000  $315,000     $687,000  $634,000
                                            ========  ========     ========  ========
</TABLE>

<TABLE>
<CAPTION>

Earnings per share - Basic:
<S>                                         <C>       <C>          <C>       <C>
     As reported                            $   0.19  $   0.18     $   0.38  $   0.36
     Pro forma                              $   0.18  $   0.17     $   0.36  $   0.35

Earnings per share - Diluted:
     As reported                            $   0.18  $   0.18     $   0.36  $   0.35
     Pro forma                              $   0.17  $   0.17     $   0.34  $   0.34
</TABLE>




                                       9
<PAGE>



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

Certain   statements   under  this  caption  may   constitute   "forward-looking
statements"  under the Private  Securities  Litigation  Reform Act of 1995 which
involve risks and  uncertainties.  Actual results may differ  significantly from
the results discussed in such forward-looking statements. Factors that may cause
such a  difference  include,  but  are  not  limited  to,  economic  conditions,
competition  in the  geographic  and  business  areas  in which  operations  are
conducted,  fluctuations  in the interest  rates,  credit quality and government
regulation.

General

Broadway  Financial  Corporation  (the  "Company")  is primarily  engaged in the
savings and loan business through its wholly owned subsidiary,  Broadway Federal
Bank,  f.s.b.  ("Broadway  Federal"  or  "the  Bank").  Broadway  Federal  is  a
community-oriented   savings  institution  dedicated  to  serving  the  African-
American,  Hispanic  and other  communities  of Mid-City  and South Los Angeles,
California.  Broadway Federal's business is that of a financial intermediary and
consists primarily of attracting deposits from the general public and using such
deposits,  together with  borrowings  and other funds,  to make  mortgage  loans
secured by residential real estate located in Southern  California.  At June 30,
2003,  Broadway  Federal  operated four retail  banking  offices in Mid-City and
South Los Angeles.  Broadway Federal is subject to significant  competition from
other  financial  institutions,  and is also  subject to  regulation  by federal
agencies and undergoes periodic examinations by those regulatory agencies.

The accompanying  consolidated  financial statements include the accounts of the
Company and its wholly owned subsidiaries,  Broadway Federal and BankSmart, Inc.
(a dormant  company).  All significant  inter-company  balances and transactions
have been eliminated in consolidation.

The Company's  principal  business is serving as a holding  company for Broadway
Federal. The Company's results of operations are dependent primarily on Broadway
Federal's  net interest  income,  which is the  difference  between the interest
income earned on its interest-earning assets, such as loans and investments, and
the interest expense paid on its interest-bearing  liabilities, such as deposits
and borrowings.  Broadway Federal also generates recurring  non-interest income,
such as  transactional  fees on its loan and deposit  portfolios.  The Company's
operating  results are affected by the amount of provisions  for loan losses and
the  Bank's  non-interest  expenses,   which  consist  principally  of  employee
compensation and benefits,  occupancy expenses, and technology and communication
costs.  More  generally,  the  results  of  operations  of  thrift  and  banking
institutions are also affected by prevailing economic  conditions,  competition,
and the monetary and fiscal policies of governmental agencies.



                                       10
<PAGE>


Critical Accounting Policy

Accounting for the allowance for loan losses involves significant  judgments and
assumptions by management, which have a material impact on the carrying value of
net  loans  receivable.  Management  considers  this  accounting  policy to be a
critical accounting policy. The judgments and assumptions used by management are
based  on  historical   experience,   current  economic  trends,  the  Company's
assessment of the  borrowers'  ability to repay and repayment  performance,  and
other factors,  which are believed to be reasonable  under the  circumstances as
described under the heading "Loans Receivable and the Allowance for Loan Losses"
in the Notes to  Consolidated  Financial  Statements  included in the  Company's
Annual Report on Form 10-KSB for the year ended December 31, 2002.


Comparison  of Operating  Results for the Three Months and Six Months ended June
30, 2003 and June 30, 2002

General

The Company  recorded net earnings of $356,000 and $720,000,  or $0.18 and $0.36
per diluted  share,  respectively,  for the three and six months  ended June 30,
2003,  compared to $322,000 and $648,000,  or $0.18 and $0.35 per diluted share,
respectively,  for the three and six months  ended June 30,  2002.  Compared  to
2002,  second  quarter net  earnings  increased  10.56% and net earnings for the
first six months increased 11.11%.

Net Earnings

The increase in net earnings in 2003 over 2002 was primarily attributable to the
increase in net interest income and non-interest  income,  offset by an increase
in  non-interest  expense.  Net interest  income after provision for loan losses
increased $92,000 and $163,000, or 4.59% and 4.09%, respectively,  for the three
and six  months  ended  June 30,  2003  compared  to the same  periods  in 2002.
Non-interest  income  increased  $125,000  and  $178,000,  or 56.56% and 38.95%,
respectively,  for the three and six months ended June 30, 2003  compared to the
same periods in 2002.  Non-interest expense increased $168,000 and $251,000,  or
9.92% and 7.47%, respectively,  for the three and six months ended June 30, 2003
compared to the same periods in 2002.

Net Interest Income

Net interest income after provision for loan losses  increased to $2,097,000 and
$4,152,000 for the three and six months ended June 30, 2003, from $2,005,000 and
$3,989,000  for the same  periods  in 2002.  A six  month  rate/volume  analysis
indicates  that the $163,000  increase in net  interest  income in the first six
months of 2003 over 2002 was primarily  attributable to the impact of the growth
in  average   interest-earning   assets  of  $33.8  million,   or  19.71%,   and
interest-bearing  liabilities of $30.9 million, or 19.08%,  which resulted in an
increase in net  interest  income of  $731,000  (volume  impact),  offset by the
impact of a decrease in the net interest rate spread of 58 basis  points,  which
resulted in a decrease in net interest income of $568,000 (rate impact).


                                       11
<PAGE>


Loan  originations  were $6.6  million  and $19.0  million for the three and six
months ended June 30, 2003  compared to $8.3  million and $13.4  million for the
same periods in 2002. Loan purchases  totaled $14.2 million in the first quarter
of 2003. No loans were purchased in the 2002 periods or in the second quarter of
2003.  Mortgage-backed securities ("MBS") purchases were $10.0 million and $12.0
million  for the three and six  months  ended  June 30,  2003  compared  to $2.1
million  for the second  quarter of 2002.  Loan  prepayments  amounted  to $14.4
million  and $23.1  million  for the three and six months  ended  June 30,  2003
compared  to $8.0  million  and  $15.0  million  for the same  periods  in 2002.
Management  anticipates  that  prepayments will continue at a comparable rate in
the current low interest rate environment,  and is focused on increasing lending
volume and continuing purchases of loans and MBSs.

Interest-bearing  liabilities  increased  $900,000  during the second quarter of
2003. The increase was primarily attributable to the net effect of a decrease in
deposits of $6.0  million and an  increase  in Federal  Home Loan Bank  ("FHLB")
advances  of  $6.9   million.   For  the  six  months   ended  June  30,   2003,
interest-bearing  liabilities  increased  $10.8  million,  resulting from a $7.4
million increase in deposits and a $3.4 million increase in FHLB advances.

The net  interest  rate spread for the three and six months  ended June 30, 2003
was 3.88% and 3.93%,  respectively,  compared to 4.52% and 4.51%,  respectively,
for the same periods in 2002. The 64 and 58 basis point  decrease in spread,  or
margin compression, was attributable to the fact that the weighted average yield
on the loan portfolio  declined more than the weighted  average cost of funds on
interest-bearing  liabilities. The yield on interest-earning assets declined 139
and 135 basis  points to 5.81% and  5.95%,  respectively,  for the three and six
months  ended June 30,  2003 from 7.20% and  7.30%,  respectively,  for the same
periods in 2002. The weighted average cost of funds declined to 1.93% and 2.02%,
respectively, for the three and six months ended June 30, 2003 compared to 2.68%
and 2.80% for the same periods in 2002.  The primary  spread  (weighted  average
interest rate on loans minus weighted average interest rate on deposits) at June
30, 2003 was 4.88% compared to 5.36% at June 30, 2002.  The Company's  interest-
earning assets are substantially  adjustable rate assets,  and as interest rates
have  fallen such assets  have  repriced  downward to a greater  extent than the
interest-  bearing   liabilities.   A  substantial   portion  of  the  Company's
interest-bearing  liabilities  have fixed rates and  maturities  that reprice at
different intervals compared to the interest-earning assets.

Provision for Loan Losses

As of June 30,  2003,  the  Company's  allowance  for loan losses  totaled  $1.4
million, unchanged from the balance at December 31, 2002. The allowance for loan
losses  represents  0.92% of gross loans at June 30, 2003,  compared to 0.98% at
December 31, 2002.


                                       12
<PAGE>


Total  non-performing  assets,  consisting of non-accrual  loans and real estate
acquired through foreclosure  ("REO"),  decreased by $55,000, to $80,000 at June
30, 2003 from $135,000 at December 31, 2002.  Non-accrual loans at June 30, 2003
consisted of one loan  totaling  $80,000  secured by a  single-family  dwelling.
There was no REO as of June 30, 2003 and December 31, 2002.  As a percentage  of
total  assets,  non-performing  assets were 0.04% at June 30, 2003,  compared to
0.07% at December 31, 2002.

Management  believes  that the  allowance  for loan  losses is adequate to cover
inherent  losses in Broadway  Federal's  loan portfolio as of June 30, 2003, but
there can be no  assurance  that  actual  losses  will not exceed the  estimated
amounts.  In addition,  the Office of Thrift Supervision ("OTS") and the Federal
Deposit Insurance  Corporation  periodically review Broadway Federal's allowance
for loan losses as an integral part of their examination process. These agencies
may require  Broadway Federal to increase the allowance for loan losses based on
their  judgments  of the  information  available  to them at the  time of  their
examination.

Non-interest Income

Total  non-interest  income increased to $346,000 and $635,000 for the three and
six months ended June 30, 2003,  from $221,000 and $457,000 for the same periods
in 2002. The $125,000 increase for the second quarter was primarily attributable
to an increase in service charges.

Non-interest Expense

Total non-interest  expense increased to $1,861,000 and $3,610,000 for the three
and six months ended June 30, 2003,  from $1,693,000 and $3,359,000 for the same
periods in 2002.  The $168,000  increase in the second quarter from 2002 to 2003
was primarily attributable to an increase in compensation and benefits costs.

Loans Receivable, Net

Loans  receivable,  net increased  $12.8 million,  or 9.2%, to $152.9 million at
June 30, 2003 from $140.1  million at December 31, 2002.  During  February 2003,
the Bank  purchased  $14.2 million of adjustable  rate mortgage  loans having an
initial fixed rate period ("hybrid  ARMs").  This purchase of hybrid ARMs, along
with loan originations,  offset the combined negative effect of a decline in the
yield on the loan portfolio and the continuing high level of loan prepayments.


                                       13
<PAGE>


Deposits

Total deposits  increased $7.4 million,  or 4.73%, to $163.5 million from $156.1
million at December 31,  2002.  Core  deposits  (NOW,  demand,  money market and
passbook  accounts)  increased by $10.0  million  during the first six months of
2003 as the Company  focused on increasing  such account types. At June 30, 2003
core deposits represented 44.6% of total deposits, compared to 40.4% at December
31, 2002, and 40.0% at June 30, 2002.

Capital

Total capital at June 30, 2003 was $17.8  million,  compared to $16.9 million at
December  31,  2002.  The  increase  was  primarily  due to net earnings for the
period.

Performance Ratios

For the three months ended June 30, 2003, the Company's return on average equity
declined  slightly to 8.03%  compared to 8.51% for the same period in 2002.  The
return on average  assets also  declined  slightly to 0.65% for the three months
ended June 30, 2003 compared to 0.72% for the same period in 2002.  The ratio of
non-interest  expense to average  assets  improved to 3.41% for the three months
ended  June  30,  2003  compared  to  3.76%  for the same  period  in 2002.  The
efficiency ratio (total non-interest  expense divided by the sum of net interest
income  before  provision  for loan losses and  non-interest  income)  increased
slightly to 76.18% in second  quarter 2003 compared to 76.06% in second  quarter
2002.

Income Taxes

The Company's  effective tax rate was approximately 39% for the three months and
six months  ended June 30,  2003,  compared  to 40% for the same  periods in the
prior year.  Income taxes are computed by applying the statutory  federal income
tax rate of 34% and the California  income tax rate of 10.84% to earnings before
income taxes. California income taxes are reduced by tax credits relating to the
California Enterprise Zone Incentive.

Liquidity, Capital Resources and Market Risk

Sources of liquidity and capital for the Company on a stand-alone  basis include
distributions  from the Bank and the issuance of equity  securities  such as the
preferred stock issued in 2002.  Dividends and other capital  distributions from
the Bank are subject to regulatory restrictions.

The  Bank's  primary  sources  of funds are  deposits,  principal  and  interest
payments on loans, mortgage-backed securities and investments, and advances from
the Federal Home Loan Bank of San Francisco.  Other sources of liquidity include
principal  repayments on mortgage-backed  securities and other investments,  and
contributions  of capital by the Company.  During the first quarter of 2003, the
Company  contributed $1 million to the Bank,  which was raised from the issuance
of preferred stock to Fannie Mae.

Since  December 31,  2002,  there has been no material  change in the  Company's
interest  rate  sensitivity.  For a discussion  on the  Company's  interest rate
sensitivity and market risk, see the Company's  annual report on Form 10-KSB for
the year ended  December 31, 2002,  including  the Company's  audited  financial
statements and the notes thereto.


                                       14
<PAGE>

Regulatory Capital

The OTS capital regulations include three separate minimum capital  requirements
for  savings  institutions  that are  subject  to OTS  supervision.  First,  the
tangible capital requirement mandates that the Bank's stockholder's equity, less
intangible  assets, be at least 1.50% of adjusted total assets as defined in the
capital  regulations.  Second, the core capital  requirement  currently mandates
that core capital (tangible capital plus certain  qualifying  intangible assets)
be  at  least  4.00%  of  adjusted  total  assets  as  defined  in  the  capital
regulations.  Third, the risk-based capital requirement  presently mandates that
core capital plus supplemental capital (as defined by the OTS) be at least 8.00%
of risk-weighted  assets as prescribed in the capital  regulations.  The capital
regulations  assign specific risk weightings to all assets and off-balance sheet
items.

Broadway  Federal was in compliance  with all capital  requirements in effect at
June   30,   2003,   and  met  all   standards   necessary   to  be   considered
"well-capitalized" under the prompt corrective action regulations adopted by the
OTS pursuant to the Federal  Deposit  Insurance  Corporation  Improvement Act of
1991 ("FDICIA").

The following table reflects the required and actual  regulatory  capital ratios
of Broadway Federal at the date indicated:

<TABLE>
<CAPTION>
                                FIRREA           FDICIA              Actual
Regulatory Capital Ratios       Minimum    "Well-capitalized"     At June 30,
  for Broadway Federal       Requirement     Requirement             2003
-------------------------    -----------   ------------------    ------------

<S>                             <C>                                  <C>
Tangible capital                1.50%            N/A                 7.52%

Core capital                    4.00%           5.00%                7.52%

Risk-based capital              8.00%          10.00%               14.02%

Tier 1 risk-based capital        N/A            6.00%               12.89%

</TABLE>


ITEM 3. DISCLOSURE CONTROLS AND PROCEDURES

As of June 30, 2003, an evaluation  was performed  under the  supervision of the
Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") of
the  effectiveness  of the  design and  operation  of the  Company's  disclosure
controls and  procedures.  Based on that  evaluation,  the Company's CEO and CFO
concluded that the Company's  disclosure  controls and procedures were effective
as of June 30, 2003.  There have been no  significant  changes in the  Company's
internal  controls or in other  factors  that could  significantly  affect these
controls subsequent to June 30, 2003.


                                       15
<PAGE>


PART II.   OTHER INFORMATION

           Item 1. LEGAL PROCEEDINGS

                   None

           Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

                   None

           Item 3. DEFAULTS UPON SENIOR SECURITIES

                   None

           Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                    The Annual Meeting of  Stockholders  of the Company was held
                    on June 18, 2003 for the following purposes:

               (a)  To elect three  directors to serve until the Annual  Meeting
                    to be held in the year 2006 and until their  successors  are
                    elected and have been qualified.

                    At the meeting,  the Stockholders  re-elected Paul C. Hudson
                    and Kellogg Chan and elected  David M. N. Harvey to serve as
                    directors for three-year terms. The number of votes for each
                    of the directors was as follows:

                                Mr. Paul C. Hudson
                                For                     1,172,577
                                Abstain                   431,392

                                Mr. Kellogg Chan
                                For                     1,192,397
                                Abstain                   411,592

                                Mr. David M. W. Harvey
                                For                     1,602,909
                                Abstain                     1,080

               (b)  To  ratify  the  appointment  of KPMG  LLP as the  Company's
                    independent auditors for 2003.

                    At the meeting, the Stockholders ratified the appointment of
                    KPMG LLP as the Company's  independent  auditors  based upon
                    1,594,052 shares voting "for", 3,666 shares voting "against"
                    and 3,865 shares abstaining.

           Item 5. OTHER INFORMATION

                   None

           Item 6. EXHIBITS AND REPORTS ON FORM 8-K

                   (a) Exhibits

                    Exhibit  31 -  Certifications  pursuant  to Rules  13a-14 or
                    15d-14 of the  Securities  as adopted  Exchange  Act of 1934
                    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

                    Exhibit 32 -  Certifications  pursuant to 18 U.S.C.  Section
                    1350,   as  adopted   pursuant   to   Section   906  of  the
                    Sarbanes-Oxley Act of 2002.

                    (b) Reports on Form 8-K

                    On May 2, 2003,  the Company filed a current  report on Form
                    8-K  pursuant to which it furnished  to the  Securities  and
                    Exchange  Commission a copy of the  Company's  press release
                    regarding  financial results for the first fiscal quarter of
                    2003.



                                       16
<PAGE>

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act of 1934, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized


Date:  August 14, 2003        By:  /s/ PAUL C. HUDSON
                              Paul C. Hudson
                              President and Chief Executive Officer
                              Broadway Financial Corporation


Date:  August 14, 2003        By:  /s/ ALVIN D. KANG
                              Alvin D. Kang
                              Chief Financial Officer
                              Broadway Financial Corporation












                                       17
<PAGE>

                                   Exhibit 31

                            SECTION 302 CERTIFICATION

    I, Paul C. Hudson, certify that:

1.   I  have  reviewed  this  report  on  Form  10-QSB  of  Broadway   Financial
     Corporation.

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the small  business  issuer as of, and for,  the periods  presented in this
     report;

4.   The small business issuer's other certifying  officer and I are responsible
     for  establishing  and maintaining  disclosure  controls and procedures (as
     defined in Exchange Act Rules 13a-15(e)and  15d-15(e)for the small business
     issuer and have:

     a)   Designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision, to ensure that material information relating to the small
          business  issuer,  including its  consolidated  subsidiaries,  is made
          known to us by others within those entities,  particularly  during the
          period in which this report is being prepared;

     b)   Evaluated the effectiveness of the small business issuer's  disclosure
          controls and procedures  and presented in this report our  conclusions
          about the  effectiveness of the disclosure  controls and procedures as
          of the  end of the  period  covered  by  this  report  based  on  such
          evaluation;

     c)   Disclosed  in this report any changes in the small  business  issuer's
          internal  control over financial  reporting  that occurred  during the
          small business issuer's most recent fiscal quarter (the small business
          issuer's  fourth fiscal  quarter in the case of an annual report) that
          has materially affected, or is reasonably likely to materially affect,
          the small business issuer's internal control over financial reporting;
          and

5.   The small business issuer's other certifying  officer and I have disclosed,
     based on our most recent  evaluation  of internal  control  over  financial
     reporting,  to the small business issuer's auditors and the audit committee
     of small business  issuer's  board of directors (or persons  performing the
     equivalent functions):

     a)   All significant  deficiencies and material weaknesses in the design or
          operation of internal  controls  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the small  business  issuer's
          ability   to  record,   process,   summarize   and  report   financial
          information; and

     b)   Any fraud, whether or not material,  that involves management or other
          employees who have a significant  role in the small business  issuer's
          internal control over financial reporting.

Date:    August 14, 2003

         /s/ Paul C. Hudson
         Signature

         Paul C. Hudson
         Chief Executive Officer
         Broadway Financial Corporation


                                       18
<PAGE>


                                   Exhibit 31

                            SECTION 302 CERTIFICATION

    I, Alvin D. Kang, certify that:

1.   I  have  reviewed  this  report  on  Form  10-QSB  of  Broadway   Financial
     Corporation.

2.   Based on my knowledge, this report does not contain any untrue statement of
     a material  fact or omit to state a  material  fact  necessary  to make the
     statements made, in light of the circumstances  under which such statements
     were made,  not  misleading  with  respect  to the  period  covered by this
     report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in  this  report,  fairly  present  in all  material
     respects the financial  condition,  results of operations and cash flows of
     the small  business  issuer as of, and for,  the periods  presented in this
     report;

4.   The small business issuer's other certifying  officer and I are responsible
     for  establishing  and maintaining  disclosure  controls and procedures (as
     defined in Exchange Act Rules 13a-15(e) and 15d-15(e)for the small business
     issuer and have:

     a)   Designed  such  disclosure  controls  and  procedures,  or caused such
          disclosure   controls  and   procedures  to  be  designed   under  our
          supervision, to ensure that material information relating to the small
          business  issuer,  including its  consolidated  subsidiaries,  is made
          known to us by others within those entities,  particularly  during the
          period in which this report is being prepared;

     b)   Evaluated the effectiveness of the small business issuer's  disclosure
          controls and procedures  and presented in this report our  conclusions
          about the  effectiveness of the disclosure  controls and procedures as
          of the  end of the  period  covered  by  this  report  based  on  such
          evaluation;

     c)   Disclosed  in this report any changes in the small  business  issuer's
          internal  control over financial  reporting  that occurred  during the
          small business issuer's most recent fiscal quarter (the small business
          issuer's  fourth fiscal  quarter in the case of an annual report) that
          has materially affected, or is reasonably likely to materially affect,
          the small business issuer's internal control over financial reporting;
          and

5.   The small business issuer's other certifying  officer and I have disclosed,
     based on our most recent  evaluation  of internal  control  over  financial
     reporting,  to the small business issuer's auditors and the audit committee
     of small business  issuer's  board of directors (or persons  performing the
     equivalent functions):

     a)   All significant  deficiencies and material weaknesses in the design or
          operation of internal  controls  over  financial  reporting  which are
          reasonably  likely to  adversely  affect the small  business  issuer's
          ability   to  record,   process,   summarize   and  report   financial
          information; and

     b)   Any fraud, whether or not material,  that involves management or other
          employees who have a significant  role in the small business  issuer's
          internal control over financial reporting.

Date:    August 14, 2003

         /s/ Alvin D. Kang
         Signature

         Alvin D. Kang
         Chief Financial Officer
         Broadway Financial Corporation


                                       19
<PAGE>


                                   Exhibit 32

                            Section 906 Certification

The Company is furnishing to the Securities and Exchange  Commission pursuant to
the  requirements  of Form 10Q-SB the  following  Certification  provided by the
undersigned  to accompany  the  foregoing  Report on Form 10-QSB  pursuant to 18
U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act
of 2002.

Each of the undersigned certifies that the foregoing Report on Form 10-QSB fully
complies  with the  requirements  of  Section  13(a) or 15(d) of the  Securities
Exchange Act of 1934 (15 U.S.C. Section 78m) and that the information  contained
in the Form 10-QSB  fairly  presents,  in all material  respects,  the financial
condition and results of operations of Broadway Financial Corporation.

Date:  August 14, 2003           By:  /s/ PAUL C. HUDSON
                                 Paul C. Hudson
                                 President and Chief Executive Officer
                                 Broadway Financial Corporation

Date: August 14, 2003            By:  /s/ ALVIN D. KANG
                                 Alvin D. Kang
                                 Chief Financial Officer
                                 Broadway Financial Corporation





                                      20
<PAGE>