U.S.
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 1934For the quarterly period ended March 31, 2001 ̈
  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
  THE SECURITIES 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
  of Incorporation)
  (IRS
  Employer Identification No.)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. 
YesxNo ̈ State the
number of shares outstanding of each of the issuer's classes of common equity,
as of the latest practicable date: 901,333 shares of the Company's Common
Stock, par value $0.01 per share, were issued and outstanding as of May 11,
2001. Transitional
Small Business Disclosure Format (Check one): Yes ̈Nox   INDEX

PART I
  FINANCIAL INFORMATIONItem 1.
  Financial StatementsConsolidated Balance
  Sheets (unaudited) as of March 31, 2001 and December 31, 2000Consolidated
  Statements of Operations (unaudited) for the three months ended March 31,
  2001 and March 31, 2000Consolidated
  Statements of Cash Flows (unaudited) for the three months ended March 31,
  2001 and March 31, 2000Notes
  to Unaudited Consolidated Financial StatementsItem 2.
  Management's
  Discussion and Analysis of Financial Condition and Results of Operations

BROADWAY FINANCIAL CORPORATIONAND
SUBSIDIARIESConsolidated Balance Sheets(Dollars
in thousands, except share amounts)(Unaudited)


March 31,
  December 31,2001
  2000Assets:Cash
  $4,452
  $5,367Federal funds sold
  24,200
  4,900Investment securities
  held to maturity
  4,000
  10,623Mortgage-backed
  securities held to maturity
  9,991
  10,748Loans receivable, net
  125,246
  126,815Loans receivable held
  for sale, at lower of cost or fair value
  -
  59Accrued interest
  receivable
  1,006
  1,071Investments in capital
  stock of Federal Home Loan Bank, at cost
  1,338
  1,316Office properties and
  equipment, net
  6,344
  6,357Other assets
  654
  670Total assets
  $177,231
  $167,926Liabilities and stockholders' equityDeposits
  $151,262
  $141,594Advances from Federal
  Home Loan Bank
  10,000
  10,000Advance payments by
  borrowers for taxes and insurance
  5
  194Deferred income taxes
  402
  402Other liabilities
  1,441
  1,759Total liabilities
  163,110
  153,949Stockholders' Equity:Preferred  non-convertible, non-cumulative, and non-voting stock, $.01      par value, authorized 1,000,000
  shares; issued and outstanding      55,199 shares at March 31, 2001 and December 31, 2000
  1
  1Common stock, $.01 par value, authorized
  3,000,000 shares; issued and      outstanding  901,333 shares at March 31, 2001 and
  December 31, 2000
  10
  10Additional paid-in capital
  9,459
  9,460Retained earnings-substantially restricted
  5,451
  5,322Treasury stock, at cost-60,402 shares at
  March 31, 2001 and December 31, 2000
  (554)
  (554)Unearned Employee Stock Ownership Plan
  shares
  (246)
  (262)Total stockholders'
  equity
  14,121
  13,977Total liabilities and
  stockholders'  equity
  $177,231
  $167,926



See Notes to
Consolidated Financial Statements


BROADWAY FINANCIAL CORPORATIONAND
SUBSIDIARIESConsolidated Statements of Operations(Dollars
in thousands, except per share amounts)(Unaudited)

Three Months Ended March 31,2001
  2000Interest on loans
  receivable
  $2,735
  $2,686Interest on investment
  securities held-to-maturity
  95
  165Interest on
  mortgage-backed securities held-to-maturity.
  170
  199Other interest income
  234
  17Total interest income
  3,234
  3,067Interest on deposits
  1,491
  1,146Interest on borrowings
  165
  244Total interest expense
  1,656
  1,390Net interest income
  before provision for loan losses
  1,578
  1,677Provision for loan
  losses
  30
  90Net interest income
  after provision for loan losses
  1,548
  1,587Non-interest income:Service charges
  145
  124Gain (loss) on loans receivable held
  for sale
  1
  (6)Other
  28
  18Total non-interest
  income
  174
  136Noninterest expense:Compensation and benefits
  831
  668Occupancy expense, net
  254
  290Advertising and promotional expense
  50
  33Professional services
  41
  86Real estate operations, net
  -
  12Contracted security services
  39
  38Telephone and postage
  56
  45Stationary, printing and supplies
  25
  28Other
  111
  242Total noninterest
  expense
  1,407
  1,442Earnings before income
  taxes
  315
  281Income taxes
  134
  114Net earnings
  181
  167Dividends paid on
  preferred stock
  (7)
  (7)Earnings available to
  common shareholders
  $174
  $160Earnings per
  share-basic
  $0.20
  $0.17Earnings per
  share-diluted
  $0.20
  $0.17Dividend declared per
  share-common stock
  $0.05
  $0.05


See Notes to
Consolidated Financial Statements






BROADWAY FINANCIAL CORPORATIONAND
SUBSIDIARIESConsolidated Statements of Cash Flows(Dollars
in thousands)(Unaudited)

Three
  months ended March 31,2001
  2000Cash flows from operating activitiesNet earnings
  $181
  $167Adjustments to
  reconcile net earnings to net cash provided by (used in) operating activities:Depreciation
  91
  88Amortization of premium on loans
  purchased
  1
  1Amortization of net deferred loan
  origination fees
  16
  (1)Amortization of discounts and premium on
  securities
  21
  32Amortization of deferred compensation
  14
  26Loss on sale of real estate acquired
  through foreclosure
  -
  4Loss (gain) on sale of loans receivable
  held for sale
  (1)
  6Provision for loan losses
  30
  90Lower of cost or fair value adjustment on
  loans receivable held for sale
  -
  96Loans originated for sale, net of
  refinances
  -
  (3,444)Proceeds from sale of loans receivable
  held for sale
  60
  1,740Changes in operating assets and
  liabilities:Accrued interest receivable
  65
  (40)Other assets
  16
  (20)Other liabilities
  (318)
  (62)Total adjustments
  (5)
  (1,484)Net cash  provided by (used in) operating activities
  176
  (1,317)Cash flows from investing activitiesLoans originated, net
  of refinances
  (2,696)
  (2,828)Principal repayment on
  loans
  4,218
  3,311Purchases of
  investment securities held-to-maturity
  (1,000)
  -Proceeds from
  maturities of investment securities held-to-maturity
  7,624
  -Proceeds from maturities
  of mortgage-backed securities held-to-maturity
  735
  719Purchase of Federal
  Home Loan stock
  (22)
  (17)Capital expenditures
  for office properties and equipment
  (78)
  (14)Proceeds from sale of
  real estate acquired through foreclosure
  -
  92Net cash  provided by (used in) investing activities
  8,781
  1,263Cash flows from financing activitiesNet increase in
  deposits
  9,668
  1,623Decrease in advances
  from Federal Home Loan Bank
  -
  (2,300)Dividends paid
  (51)
  (54)Decrease in advances
  by borrowers for taxes and insurance
  (189)
  (136)Net cash provided by
  (used in) financing activities
  9,428
  (867)Net increase
  (decrease) in cash and cash equivalents
  18,385
  (921)Cash and cash
  equivalents at beginning of period
  10,267
  3,135Cash and cash
  equivalents at end of period
  $28,652
  $2,214Supplemental disclosures of cash flow information:Cash paid for interest
  $1,697
  $1,421Cash paid for income
  taxes
  408
  25Supplemental disclosure of noncash investing and financing
  activitiesTransfers of real
  estate acquired through foreclosure from loans receivable
  -
  107


See  Notes to Consolidated Financial Statements


BROADWAY
FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS

MARCH 31, 2001



1.In the opinion of Broadway Financial
Corporation's management (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 at March 31, 2001 and the
results of its operations for the three months ended March 31, 2001 and 2000,
and its cash flows for the three months ended March 31, 2001 and 2000.  These 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, 2000 and, accordingly, should be read in conjunction with
such audited statements.  The results of
operations for the three months ended March 31, 2001 are not necessarily
indicative of the results to be expected for the full year.

2.Recent Accounting Pronouncements

In June 1998,
the Financial Accounting Standards Board issued SFAS No. 133, Accounting for
Derivative Instruments and Hedging Activities.  SFAS No. 133 establishes accounting and reporting standards for
derivative instruments and hedging activities. 
SFAS No. 133 requires recognition of all derivative instruments in the
statement of financial position as either assets or liabilities and the
measurement of derivative instruments at fair value.  SFAS No. 133 is effective for fiscal years beginning after June
15, 1999. SFAS No. 133 was amended by SFAS No. 137, Accounting for Derivative
Instruments and Hedging Activities-Deferral of Effective Date of FASB Statement
No. 133., and SFAS No. 138, Accounting for Certain Derivative Instruments and
Certain Hedging Activities, an amendment to FASB Statement No. 133.   SFAS No. 133 established accounting and
reporting standards for derivative instruments and hedging activities. As
amended by SFAS Nos. 137 and 138, SFAS No. 133 is effective for fiscal years
beginning after June 15, 2000.  The
adoption of SFAS No. 133 did not have a material effect on the Companys
consolidated results of operations or financial condition, as the Company does
not hold any derivative instruments.

In March 2000,
the Financial Accounting Standards Board issued Interpretation No. 44,
Accounting for Certain Transactions Involving Stock Compensation.  This Interpretation clarifies issues
relating to APB Opinion No. 25, Accounting for Stock Issued to Employees.  FASB Interpretation No. 44 contains
information relating to (a) the definition of employee for purposes of applying
Opinion 25, (b) the criteria for determining whether a plan qualifies as a
non-compensatory plan, (c) the accounting consequences of various modifications
to the term of a previously fixed stock option or award, and (d) the accounting
for an exchange of stock compensation awards in a business combination.  FASB Interpretation No. 44 was effective
July 1, 2000.  The effects of applying
this Interpretation are recognized on a prospective basis from July 1, 2000.  The implementation of FASB Interpretation
No. 44 did not have a material impact on the Companys consolidated results of
operations or financial condition.

In September
2000, the Financial Accounting Standards Board issued SFAS No. 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities, a replacement of FASB Statement No. 125.  SFAS No. 125 supercedes and replaces the
guidance in FASB No. 125, Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities. SFAS No. 140 revises the standards
for accounting for securitizations and other transfers of financial assets and
collateral and requires certain disclosures. 
SFAS No. 140 provides accounting and reporting standards for transfers
of financial assets and extinguishments of liabilities by providing consistent
standards for distinguishing transfers of financial assets that are sales from
transfers that are secured borrowings. 
SFAS No. 140 is effective for disclosures in financial statements issued
subsequent to December 15, 2000, and for transactions entered into after March
31, 2001.  The adoption of SFAS No. 140
did not have a material impact on the Companys financial statements.

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

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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 March 31,
2001, Broadway Federal operated five retail banking offices, including a loan
processing center, in Southern California. 
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.(BankSmart).  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 and
BankSmart.  The Company's results of
operations are dependent primarily on its 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 the Bank's non-interest
expenses, which consist principally of employee compensation and benefits,
occupancy expenses, federal deposit insurance premiums and by its periodic
provisions for loan losses.  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.

Effective
March 31, 2001, the two SmartCopy centers that had been operated by BankSmart
in two of the Bank's branch offices were closed because they were not
profitable.  As of March 31, 2001, the
operations of BankSmart are insignificant to the operations of the Company and,
as such, do not constitute a separately reportable segment, under applicable
accounting standards.

Comparison of
Operating Results for the three months ended March 31, 2001 and March 30, 2000

General

The Company
recorded net earnings of $181,000, or $0.20 per diluted common share, for the
three months ended March 31, 2001, as compared to net earnings of $167,000, or
$0.17 per diluted common share, for the three months ended March 31, 2000.  The increase in net earnings for three
months ended March 31, 2001 compared to the same period in the prior year
resulted primarily from higher non-interest income, lower non-interest expense
and a lower provision for loan losses, offset by lower net interest income
before provision for loan losses.

Non-interest Income

Non-interest
income increased $38,000, to $174,000, for the three months ended March 31,
2001 as compared to the same period in 2000. 
Service charges increased $21,000, to $145,000 for the three months
ended March 31, 2001 from $124,000 for the same period in the prior year.  The increases primarily resulted from higher
fees earned from customers on deposit accounts, including returned check fees
on checking accounts.  The Company has
emphasized checking account growth through marketing during the past year.  Gain on sale of loans receivable held for
sale increased from a $6,000 loss in 2000 to a $1,000 gain in 2001.

Non-interest Expense

Non-interest
expense decreased by $35,000 during the three-month period ended March 31,
2001, as compared to the same period in 2000. 
The decrease in non-interest expense primarily resulted from reductions
in losses on sales of loans and other expenses, offset primarily by increases
in compensation and benefits.  Other
non-interest expense decreased by $131,000 for the three-month period ended
March 31, 2001, as compared to the same period during 2000. The decreases were
primarily caused by a reduction in costs of $96,000 and $30,000 associated with
unrealized loss on loans held for sale and branch losses, respectively.  Compensation and benefits expense increased
by $163,000 for the three months ended March 31, 2001, as compared to the same
period in 2000.  The increase was
principally due to a higher accrual of vested stock grants and bonuses, and
higher employee compensation expense.

Non-interest
expense was also impacted by decreases in occupancy expense, professional services
and real estate operations, offset by increases in advertising and promotional
expense, and telephone and postage. 
Occupancy expense decreased by $36,000 during three months ended March
31, 2001 as compared to the same period in 2000.  The decrease was primarily due to a $66,000 decrease in costs
associated with SmartCopy, offset by a $17,000 increase in Bank maintenance and
repair and an $11,000 increase in computer expenses.  The decrease in costs associated with SmartCopy were primarily
due to the reversal of $51,000 in equipment lease termination costs accrued at
December 31, 2000 as a result of the SmartCopy closure.  The reversal of a portion of the costs
resulted from a decision to use part of the equipment in other parts of the
Company.

Professional
services decreased by  $45,000 during
the three months ended March 31, 2001, as compared to the same period in
2000.  The decrease was principally
attributable to a reduction in legal expenses and consulting fees.  Since the Company had no REO at March 31,
2001, real estate operations, net decreased by $12,000, for the three months
ended March 31, 2001, as compared to the same period in 2000. Advertising
expense increased by $17,000 for the three months ended March 31, 2001, as
compared to the same period in 2000 primarily due to increased marketing
activities during the first quarter of 2001.

Provision for Loan Losses

The provision
for loan losses decreased $60,000, from $90,000 for three months ended March
31, 2000 to $30,000, for the same period in 2001.  This loan loss provision reflects the decrease in the real estate
loan portfolio coupled with recognition of improvement in non-accrual loans.

Total non-performing assets, consisting of
non-accrual loans and real estate acquired through foreclosure
("REO"), decreased by $831,000, from $1.37 million at March 31, 2000
to $538,000 at March 31, 2001.  The
decrease resulted from a decrease in non-accrual loans of $293,000 and a
decrease in REO of $538,000.  As a
percentage of total assets, non-performing assets were 0.30% at March 31, 2001,
compared to 0.83% and 0.38% at March 31, 2000 and December 31, 2000,
respectively.  Since December 2000,
non-accrual loans decreased by $94,000, to $538,000.  There was no REO at March 31, 2001 and at December 31, 2000.  Non-accrual loans at March 31, 2001 included
two loans totaling $157,000 secured by one- to four-unit properties and three
unsecured loans totaling $381,000.  The
Companys improved asset quality is the result of improved loan underwriting,
aggressive collection efforts and a strong local economy.

As of
March 31, 2001 the Company's allowance for loan losses totaled $1.5 million,
representing a $30,000 increase from the balance at December 31, 2000.  The allowance for loan losses represents
1.14% of gross loans at March 31, 2001 compared to 1.10% at December 31, 2000.
The allowance for loan losses was 269.70% of non-accrual loans at March 31,
2001, compared to 224.84% at December 31, 2000.

The
provision for loan losses for the quarter ended March 31, 2001 results from
managements ongoing assessment of the Companys level of credit risk inherent
in the loan portfolio and changes within the loan categories resulting from
various factors, including new loan originations, loan repayments, prepayments
and changes in asset classifications. 
Management will continue to monitor the allowance for loan losses and
adjust the Companys provision for loan losses based on the risks inherent in
the loan portfolio.

Management
believes that the allowance for loan losses is adequate to cover inherent
losses in its loan portfolio as of March 31, 2001, 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 the Banks allowance for loan losses as an integral part of their
examination process. These agencies may require the Company to increase the
allowance for loan losses based on their judgements of the information available
to them at the time of the examination.

Net Interest Income Before
Provision for Loan Losses

Net interest
income before the provision for loan losses for the quarter ended March 31,
2001 amounted to $1.6 million, compared to $1.7 million for the same period a
year ago.  The net interest margin for
the three months ended March 31, 2001 was 3.94%, a 38-basis point decrease
compared to the same period in the prior year. 
The net interest rate spread decreased 43-basis points, from 4.11% at
March 31, 2000 to 3.68% at March 31, 2001. 
These decreases for the three months ended March 31, 2001 were primarily
a result of a $266,000 increase in the cost of interest-bearing liabilities,
partially offset by a $167,000 increase in the yield on interest-earning assets
as compared to the same period in the prior year.  The increase in the cost of interest-bearing liabilities was due
to a $345,000 increase in interest on deposits offset by a $79,000 decrease in
interest on borrowings.  The increase in
interest on deposits were due to an increase in average deposits of $12.5
million to $147.3 million for the three months ended March 31, 2001, as
compared to $134.8 million during the same period in 2000. The increase in
interest on deposits also reflects the current interest rate environment as the
average cost of deposits increased 56-basis points, from 3.41% for the three
months ended March 31, 2000 to 3.97% for the same period in 2001.  Management anticipates that the cost of
deposits will trend downward during the coming months as maturing certificate
accounts are repriced in the current interest rate environment.  Average borrowings decreased by $7.1 million
for the three months ended March 31, 2001 as compared to the same period in
2000.  The decrease was funded by the increase
in average deposits during the period.

The
increase in the yield on interest-earning assets for the three months ended
March 31, 2001 was primarily due to the growth in interest- earning assets as
compared to the same period in the prior year. 
Average interest-earning assets for the three months ended March 31,
2001 were $160.3 million as compared to $155.3 million for the same period in
the prior year.  The growth in
interest-earning assets since December 31, 2000 resulted from an inflow of
deposits during the quarter, which were invested in Federal Funds sold at March
31, 2001.  Management anticipates using
these funds to increase its loan portfolio through the Companys improved loan
origination process.

Income Taxes

The Companys
effective tax rate was approximately 42.5% for the three months ended March 31,
2001, compared to approximately 40.6% for the same respective period in the
prior year.  Broadway Federal computes
income taxes by applying the statutory federal income tax rate of 34% and
California income tax rate of 10.84% to earnings before income taxes.  The increase in the Companys effective tax
rate resulted from the expiration of certain credits applied in prior years.

Comparison of Financial
Condition at March 31, 2001 and December 31, 2000

Total assets at
March 31, 2001 were $177.2 million, compared to $167.9 million at December 31,
2000, representing an increase of $9.3 million.  Net loans receivable (excluding loans held for sale) decreased
from $126.8 million at December 31, 2000 to $125.2 million at March 31, 2001 as
a result of $2.7 million in new loan originations, offset by $4.2 million in
principal repayments, and $30,000 of provision for loan losses.  Loans held for sale at March 31, 2001 were
zero as compared to $59,000 at December 31, 2000. During the period, loans
originated that were classified as held-for-sale were zero and loans sold
totaled $59,000.

Total
liabilities at March 31, 2001 were $163.1 million, compared to $153.9 million
at December 31, 2000.  The $9.2 million
increase was primarily attributable to an increase in deposits, offset by a
decrease in other liabilities and advance payments by borrowers for taxes and
insurance

Total
capital at March 31, 2001 was $14.1 million compared to $14.0 million at
December 31, 2000.  The $144,000
increase was primarily due to net earnings for the period and allocation of
ESOP shares, offset by cash dividends declared.

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 borrowings, such as securities sold under
agreements to repurchase.  Dividends and
other capital distributions from the Bank are subject to regulatory
restrictions.

The Banks
primary sources of funds are Bank deposits, principal and interest payments on
loans and, to a lesser extent, proceeds from the sale of loans and advances
from the FHLB.  While maturities and
scheduled amortization of Bank loans are relatively predictable sources of
funds, deposit flows and mortgage prepayments are greatly influenced by general
interest rates, economic conditions, and competition.  Broadway Federal's average liquidity ratio was 20.47%, for the
three-month period ended March 31, 2001, as compared to 11.87% for the same period
during 2000.  The increase is due to the
fact that at March 31, 2001, liquid assets, which are a component of the
liquidity calculation, included $24.2 million in fed funds.  At March 31, 2000 there were no Federal
Funds included in liquid assets.  The
Banks liquidity ratio included qualifying unpledged marketable securities
being held to maturity.

The Bank has
other sources of liquidity in the event that a need for additional funds
arises, including FHLB advances.  At
March 31, 2001 and 2000, FHLB advances totaled $10.0 million and $14.6
million, respectively, that Broadway Federal had borrowed from the FHLB to meet
its short-term loan funding needs. 
Other sources of liquidity include principal repayments on
mortgage-backed securities.

Since December
31, 2000 there has been no material change in the Companys interest rate
sensitivity as of March 31, 2001.  For a
discussion on the Companys interest rate sensitivity and market risk, see the
Companys annual report for the year ended December 31, 2000 and the notes
thereto.

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 for this purpose.

Broadway
Federal was in compliance with all capital requirements in effect at March 31,
2001, and meets 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:



FIRREA
  
  FDICIA
  
  ActualRegulatory Capital Ratios
  
  Minimum
  
  "Well-capitalized"
  
  At March 31,for Broadway Federal
  
  Requirement
  
  Requirement
  
  2001Tangible
  capital
  
  
  1.50%
  
  N/A
  
  6.80%Core
  capital
  
  
  4.00%
  
  5.00%
  
  6.80%Risk-based
  capital
  
  
  8.00%
  
  10.00%
  
  12.65%Tier
  1 Risk-based capital
  
  N/A
  
  6.00%
  
  11.62%

FORWARD LOOKING STATEMENTS

This report contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995, which can be identified by the use of forward-looking terminology,
including "may," "will," "should,"
"expect," "anticipate," "estimate," or
"continue" or the negatives thereof or other comparable terminology.
The Company's actual results could differ materially from those anticipated in
such forward-looking statements as a results of various factors, including
those set forth in the documents filed by the Company with the Securities and
Exchange Commission.

SIGNATURES



Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.



BROADWAY FINANCIAL
  CORPORATIONDate:    
  May 11, 2001
  By:
  /s/ PAUL C. HUDSONPaul C. HudsonPresident and Chief Executive OfficerBy: 
  /s/ BOB ADKINSBob AdkinsChief Financial Officer