##### Table of Contents



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 1934
|           |  |                                                                                                  
|           |  | For the quarterly period ended
        September 30, 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. 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: 909,898 shares of the
Companys Common Stock, par value $0.01 per share, were issued and outstanding
as of October 31, 2001.

Transitional Small Business Disclosure Format (Check one):

Yes [  ] No [x]





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TABLE OF CONTENTS



|                           |                                                                                               |                                                                  |  |  |  |  |  | 
|-------------------------- | --------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- |  |  |  |  |  | 
|                           |                                                                                               | Consolidated Balance Sheets                                     
|                           |                                                                                               | Consolidated Statements of Operations and Comprehensive Earnings
|                           |                                                                                               | Consolidated Statements of Cash Flows                           
|                           |                                                                                               | NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS            
|                           | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|PART II. OTHER INFORMATION
|                           | Item 1. LEGAL PROCEEDINGS                                                                    
|                           | Item 2. CHANGES IN SECURITIES                                                                
|                           | Item 3. DEFAULTS ON SENIOR SECURITIES                                                        
|                           | Item 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS                                    
|                           | Item 5. OTHER INFORMATION                                                                    
|                           | Item 6. EXHIBITS AND REPORTS ON FORM 8-K                                                     
|SIGNATURES                



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##### Table of Contents



INDEX

|        |  |                               |  |                                                                                                                                                                                                    |  |     
|------- |  | ----------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|        |  |                               |  |                                                                                                                                                                                                    |  | Page
|        |  |                               |  |                                                                                                                                                                                                    |  |     
|PART I  |  | FINANCIAL
        INFORMATION |  |                                                                                                                                                                                                   
|        |  | Item 1.                       |  | Financial Statements                                                                                                                                                                               |  |     
|        |  |                               |  | Consolidated Balance
        Sheets (unaudited) 
        as of September 30, 2001 and December 31, 2000                                                                                            |  | 3   
|        |  |                               |  | Consolidated Statements
        of Operations and 
        Comprehensive Earnings (unaudited) for the three months
        and nine months ended September 30, 2001 and
        September 30, 2000 |  | 4   
|        |  |                               |  | Consolidated Statements
        of Cash Flows
        (unaudited) for the nine months ended
        September 30, 2001 and September 30, 2000                                                      |  | 5   
|        |  |                               |  | Notes to Unaudited
        Consolidated Financial Statements                                                                                                                                       |  | 7   
|        |  | Item 2.                       |  | Managements
        Discussion and Analysis of
        Financial Condition and Results of Operations                                                                                              |  | 9   
|PART II |  | OTHER
        INFORMATION     |  |                                                                                                                                                                                                   
|        |  | Item 1.                       |  | Legal Proceedings                                                                                                                                                                                  |  | 16  
|        |  | Item 2.                       |  | Change in securities                                                                                                                                                                               |  | 16  
|        |  | Item 3.                       |  | Defaults on Senior
        Securities                                                                                                                                                              |  | 16  
|        |  | Item 4.                       |  | Submission of Matters
        to a Vote of Security Holders                                                                                                                                        |  | 16  
|        |  | Item 5.                       |  | Other Information                                                                                                                                                                                  |  | 16  
|        |  | Item 6.                       |  | Exhibits and Report
        on Form 8-K                                                                                                                                                            |  | 16  



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##### Table of Contents






BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands, except share amounts)
(Unaudited)

|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |       |   | 
|--------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- | ------------- | - | ------------ | ------- | ----- | - | 
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         | September
30, |   | December
31,
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         | 2001          |   | 2000        
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |             
|Assets:                                                         |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      
|Cash                                                            |                                                                                                                                                                                                      | $                                                                                                                                                                                                                                        | 4,621   |               |   | $            | 5,367   |      
|Fed funds sold                                                  |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 7,100   |               |   |              | 4,900   |      
|Investment securities held-to-maturity                          |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 4,000   |               |   |              | 10,623  |      
|Investment securities available-for-sale                        |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 4,604   |               |   |              |        |      
|Mortgage-backed securities held-to-maturity                     |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 13,983  |               |   |              | 10,748  |      
|Loans receivable, net                                           |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 131,505 |               |   |              | 126,815 |      
|Loans receivable held-for-sale, at lower of cost or fair value  |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 7,142   |               |   |              | 59      |      
|Accrued interest receivable                                     |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 1,039   |               |   |              | 1,071   |      
|Investments in capital stock of Federal Home Loan Bank, at cost |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 1,380   |               |   |              | 1,316   |      
|Office properties and equipment, net                            |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 6,033   |               |   |              | 6,357   |      
|Other assets                                                    |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 610     |               |   |              | 670     |      
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      
|Total assets                                                    |                                                                                                                                                                                                      | $                                                                                                                                                                                                                                        | 182,017 |               |   | $            | 167,926 |      
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      
|Liabilities and stockholders equity                            |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      
|Deposits                                                        |                                                                                                                                                                                                      | $                                                                                                                                                                                                                                        | 157,240 |               |   | $            | 141,594 |      
|Advances from Federal Home Loan Bank                            |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 8,250   |               |   |              | 10,000  |      
|Advance payments by borrowers for taxes and insurance           |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 418     |               |   |              | 194     |      
|Deferred income taxes                                           |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 404     |               |   |              | 402     |      
|Other liabilities                                               |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 1,158   |               |   |              | 1,759   |      
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      
|Total liabilities                                               |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 167,470 |               |   |              | 153,949 |      
|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
          
          at September 30, 2001 and December 31, 2000 |         |               | 1 |              |         |       | 1 | 
|                                                                | Common
          stock, $.01 par value, authorized 3,000,000 shares; issued and
          outstanding 909,898 and 901,333 shares at September 30, 2001 and
          December 31, 2000, respectively |                                                                                                                                                                                                                                          |         | 10            |   |              |         | 10    |  
|                                                                | Additional paid-in capital                                                                                                                                                                           |                                                                                                                                                                                                                                          |         | 9,478         |   |              |         | 9,460 |  
|                                                                |                                                                                                                                                                                                      | Accumulated other comprehensive earnings, net of taxes                                                                                                                                                                                   |         |               | 2 |              |         |       |  | 
|                                                                | Retained earnings-substantially restricted                                                                                                                                                           |                                                                                                                                                                                                                                          |         | 5,747         |   |              |         | 5,322 |  
|                                                                | Treasury
          stock  51,837 and 60,402 shares, at cost at September 30, 2001 and
          December 31, 2000, respectively                                                                     |                                                                                                                                                                                                                                          |         | (475          | ) |              |         | (554  | )
|                                                                | Unearned Employee Stock Ownership Plan shares                                                                                                                                                        |                                                                                                                                                                                                                                          |         | (216          | ) |              |         | (262  | )
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      
|Total stockholders equity                                      |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          | 14,547  |               |   |              | 13,977  |      
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      
|Total liabilities and stockholders equity                      |                                                                                                                                                                                                      | $                                                                                                                                                                                                                                        | 182,017 |               |   | $            | 167,926 |      
|                                                                |                                                                                                                                                                                                      |                                                                                                                                                                                                                                          |         |               |   |              |         |      

See Notes to Consolidated Financial Statements

3



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##### Table of Contents






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

|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |   |       |  
|------------------------------------------------------- | ------------------------------------------------ | --------------------------------------------- | ------- | ------------------ | --- | ----------------- | ------- | ---- | --- | ---- | ------- | -- | ----- | - | ------- | - | ----- | -
|                                                        |                                                  |                                               |         | Three Months Ended |     | Nine Months Ended
|                                                        |                                                  |                                               |         | September 30,      |     | September 30,    
|                                                        |                                                  |                                               |         |                    |     |                  
|                                                        |                                                  |                                               |         | 2001               |     | 2000              |         | 2001 |     | 2000
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |     
|Interest on loans receivable                            |                                                  | $                                             | 2,957   |                    |     | $                 | 2,661   |      |     | $    | 8,552   |    |       | $ | 8,029   |  
|Interest on investment securities held-to-maturity      |                                                  |                                               | 13      |                    |     |                   | 120     |      |     |      | 150     |    |       |   | 443     |  
|Interest on investment securities held-for-sale         |                                                  |                                               | 58      |                    |     |                   |        |      |     |      | 94      |    |       |   |        |  
|Interest on mortgage-backed securities held-to-maturity |                                                  |                                               | 194     |                    |     |                   | 183     |      |     |      | 539     |    |       |   | 572     |  
|Other interest income                                   |                                                  |                                               | 50      |                    |     |                   | 62      |      |     |      | 476     |    |       |   | 103     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Total interest income                                   |                                                  |                                               | 3,272   |                    |     |                   | 3,026   |      |     |      | 9,811   |    |       |   | 9,147   |  
|Interest on deposits                                    |                                                  |                                               | 1,418   |                    |     |                   | 1,254   |      |     |      | 4,382   |    |       |   | 3,580   |  
|Interest on borrowings                                  |                                                  |                                               | 138     |                    |     |                   | 193     |      |     |      | 451     |    |       |   | 634     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Total interest expense                                  |                                                  |                                               | 1,556   |                    |     |                   | 1,447   |      |     |      | 4,833   |    |       |   | 4,214   |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Net interest income before provision for loan losses    |                                                  |                                               | 1,716   |                    |     |                   | 1,579   |      |     |      | 4,978   |    |       |   | 4,933   |  
|Provision for loan losses                               |                                                  |                                               | 30      |                    |     |                   | 90      |      |     |      | 105     |    |       |   | 270     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Net interest income after provision for loan losses     |                                                  |                                               | 1,686   |                    |     |                   | 1,489   |      |     |      | 4,873   |    |       |   | 4,663   |  
|Noninterest income:                                     |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|                                                        |                                                  | Service charges                               |         |                    | 169 |                   |         |      | 184 |      |         |    | 489   |   |         |   | 445   |  
|                                                        |                                                  | Gain (loss) on loans receivable held for sale |         |                    | (1  | )                 |         |      |    |      |         |    | (1    | ) |         |   |      |  
|                                                        |                                                  | Other                                         |         |                    | 25  |                   |         |      | 193 |      |         |    | 77    |   |         |   | 246   |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Total non-interest income                               |                                                  |                                               | 193     |                    |     |                   | 377     |      |     |      | 565     |    |       |   | 691     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Non-interest expense:                                   |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|                                                        |                                                  | Compensation and benefits                     |         |                    | 796 |                   |         |      | 761 |      |         |    | 2,434 |   |         |   | 2,176 |  
|                                                        |                                                  | Occupancy expense, net                        |         |                    | 315 |                   |         |      | 305 |      |         |    | 878   |   |         |   | 910   |  
|                                                        |                                                  | Advertising and promotional expense           |         |                    | 35  |                   |         |      | 41  |      |         |    | 122   |   |         |   | 125   |  
|                                                        |                                                  | Professional services                         |         |                    | 56  |                   |         |      | 56  |      |         |    | 169   |   |         |   | 214   |  
|                                                        |                                                  | Real estate operations, net                   |         |                    |    |                   |         |      | (36 | )    |         |    |      |   |         |   | (78   | )
|                                                        |                                                  | Contracted security services                  |         |                    | 41  |                   |         |      | 44  |      |         |    | 121   |   |         |   | 121   |  
|                                                        |                                                  | Telephone and postage                         |         |                    | 46  |                   |         |      | 40  |      |         |    | 160   |   |         |   | 125   |  
|                                                        |                                                  | Stationary, printing and supplies             |         |                    | 36  |                   |         |      | 40  |      |         |    | 89    |   |         |   | 106   |  
|                                                        |                                                  | Other                                         |         |                    | 147 |                   |         |      | 95  |      |         |    | 487   |   |         |   | 471   |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Total non-interest expense                              |                                                  |                                               | 1,472   |                    |     |                   | 1,346   |      |     |      | 4,460   |    |       |   | 4,170   |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Earnings before income taxes                            |                                                  |                                               | 407     |                    |     |                   | 520     |      |     |      | 978     |    |       |   | 1,184   |  
|Income taxes                                            |                                                  |                                               | 167     |                    |     |                   | 238     |      |     |      | 401     |    |       |   | 507     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Net earnings                                            |                                                  | $                                             | 240     |                    |     | $                 | 282     |      |     | $    | 577     |    |       | $ | 677     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Other comprehensive earnings:                           |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|                                                        | Unrealized gain on securities available-for-sale |                                               | $       | 4                  |     |                   | $       |     |     |      | $       | 4  |       |   | $       |  |      
|                                                        | Income taxes                                     |                                               |         | (2                 | )   |                   |         |     |     |      |         | (2 | )     |   |         |  |      
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Other comprehensive earnings                            |                                                  |                                               | 2       |                    |     |                   |        |      |     |      | 2       |    |       |   |        |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Comprehensive earnings                                  |                                                  | $                                             | 242     |                    |     | $                 | 282     |      |     | $    | 579     |    |       | $ | 677     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Net earnings                                            |                                                  | $                                             | 240     |                    |     | $                 | 282     |      |     | $    | 577     |    |       | $ | 677     |  
|Dividends paid on preferred stock                       |                                                  |                                               | (7      | )                  |     |                   | (7      | )    |     |      | (21     | )  |       |   | (21     | )
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Earnings available to common shareholders               |                                                  | $                                             | 233     |                    |     | $                 | 275     |      |     | $    | 556     |    |       | $ | 656     |  
|                                                        |                                                  |                                               |         |                    |     |                   |         |      |     |      |         |    |       |   |         |  
|Earnings
per share  basic                              |                                                  | $                                             | 0.26    |                    |     | $                 | 0.32    |      |     | $    | 0.63    |    |       | $ | 0.74    |  
|Earnings per share  diluted                            |                                                  | $                                             | 0.26    |                    |     | $                 | 0.32    |      |     | $    | 0.63    |    |       | $ | 0.74    |  
|Dividend declared per share  common stock              |                                                  | $                                             | 0.05    |                    |     | $                 | 0.05    |      |     | $    | 0.15    |    |       | $ | 0.15    |  
|Basic weighted average shares outstanding               |                                                  |                                               | 885,369 |                    |     |                   | 869,824 |      |     |      | 876,802 |    |       |   | 883,796 |  
|Diluted weighted average shares outstanding             |                                                  |                                               | 891,520 |                    |     |                   | 869,824 |      |     |      | 879,053 |    |       |   | 883,796 |  

See Notes to Consolidated Financial Statements

4



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##### Table of Contents






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

|                                                                                                                  |  |                                                          |                             |   |                                 |      |        |   |        |     |  
|----------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------- | --------------------------- | - | ------------------------------- | ---- | ------ | - | ------ | --- | -
|                                                                                                                  |  |                                                          |                             |   | Nine
months ended September 30,
|                                                                                                                  |  |                                                          |                             |   |                                
|                                                                                                                  |  |                                                          |                             |   | 2001                            |      | 2000  
|                                                                                                                  |  |                                                          |                             |   |                                 |      |       
|Cash flows from operating activities                                                                              |  |                                                          |                             |   |                                 |      |        |  
|Net earnings                                                                                                      |  | $                                                        | 577                         |   |                                 | $    | 677    |  
|Adjustments
          to reconcile net earnings to net cash provided by
          (used in) operating activities: |  |                                                          |                             |   |                                 |      |        |  
|                                                                                                                  |  | Depreciation                                             |                             |   | 265                             |      |        |   | 268    |    
|                                                                                                                  |  | Amortization of premium on loans purchased               |                             |   | 4                               |      |        |   | 3      |    
|                                                                                                                  |  | Amortization of net deferred loan origination fees       |                             |   | (14                             | )    |        |   | (36    | )  
|                                                                                                                  |  | Amortization of discounts and premium on securities      |                             |   | (195                            | )    |        |   | 94     |    
|                                                                                                                  |  | Amortization of deferred compensation                    |                             |   | 67                              |      |        |   | 73     |    
|                                                                                                                  |  | Gain on sale of real estate acquired through foreclosure |                             |   |                                |      |        |   | (100   | )  
|                                                                                                                  |  | Gain on sale of fixed assets                             |                             |   | (15                             | )    |        |   |       |    
|                                                                                                                  |  | Loss
on sale of loans receivable held-for-sale           |                             |   | 1                               |      |        |   | 116    |    
|                                                                                                                  |  | Provision for loan losses                                |                             |   | 105                             |      |        |   | 270    |    
|                                                                                                                  |  | Loans originated for sale, net of refinances             |                             |   | (299                            | )    |        |   | (3,055 | )  
|                                                                                                                  |  | Proceeds
from sale of loans receivable held-for-sale     |                             |   | 357                             |      |        |   | 5,397  |    
|                                                                                                                  |  | Changes in operating assets and liabilities:             |                             |   |                                 |      |        |   |        |    
|                                                                                                                  |  |                                                          | Accrued interest receivable |   |                                 | 32   |        |   |        | (40 | )
|                                                                                                                  |  |                                                          | Other assets                |   |                                 | 60   |        |   |        |    |  
|                                                                                                                  |  |                                                          | Accrual for branch closure  |   |                                 | 55   |        |   |        |    |  
|                                                                                                                  |  |                                                          | Deferred income taxes       |   |                                 | 2    |        |   |        |    |  
|                                                                                                                  |  |                                                          | Other liabilities           |   |                                 | (526 | )      |   |        | 380 |  
|                                                                                                                  |  |                                                          |                             |   |                                 |      |        |  
|Total adjustments                                                                                                 |  |                                                          | (101                        | ) |                                 |      | 3,370  |  
|                                                                                                                  |  |                                                          |                             |   |                                 |      |        |  
|Net cash provided by operating activities                                                                         |  |                                                          | 476                         |   |                                 |      | 4,047  |  
|                                                                                                                  |  |                                                          |                             |   |                                 |      |        |  
|Cash flows from investing activities                                                                              |  |                                                          |                             |   |                                 |      |        |  
|Loans originated, net of refinances                                                                               |  |                                                          | (17,870                     | ) |                                 |      | (8,541 | )
|Principal repayment on loans                                                                                      |  |                                                          | 13,943                      |   |                                 |      | 10,040 |  
|Purchases of investment securities held-to-maturity                                                               |  |                                                          | (5,000                      | ) |                                 |      |       |  
|Purchases of mortgage-backed securities held-to-maturity                                                          |  |                                                          | (5,317                      | ) |                                 |      |       |  
|Purchases of securities held-for-sale                                                                             |  |                                                          | (4,600                      | ) |                                 |      |       |  
|Purchases of loans held-for-sale                                                                                  |  |                                                          | (8,001                      | ) |                                 |      |       |  
|Proceeds from maturities of investment securities held-to-maturity                                                |  |                                                          | 11,624                      |   |                                 |      |       |  
|Proceeds from maturities of mortgage-backed securities held-to-maturity                                           |  |                                                          | 2,276                       |   |                                 |      | 1,861  |  
|Purchase of Federal Home Loan stock                                                                               |  |                                                          | (64                         | ) |                                 |      | (65    | )
|Proceeds from sale of fixed assets                                                                                |  |                                                          | 210                         |   |                                 |      |        |  
|Capital expenditures for office properties and equipment                                                          |  |                                                          | (191                        | ) |                                 |      | (48    | )
|Proceeds from sale of real estate acquired through foreclosure                                                    |  |                                                          |                            |   |                                 |      | 854    |  
|                                                                                                                  |  |                                                          |                             |   |                                 |      |        |  
|Net cash provided by (used in) investing activities                                                               |  |                                                          | (12,990                     | ) |                                 |      | 4,101  |  
|                                                                                                                  |  |                                                          |                             |   |                                 |      |        |  

See Notes to Consolidated Financial Statements

5



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##### Table of Contents



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

|                                                                                          |  |                                 |        |      |  |   |        |  
|----------------------------------------------------------------------------------------- |  | ------------------------------- | ------ | ---- |  | - | ------ | -
|                                                                                          |  | Nine
months ended September 30,
|                                                                                          |  |                                
|                                                                                          |  | 2001                            |        | 2000
|                                                                                          |  |                                 |        |     
|Cash
          flows from financing activities                                            |  |                                 |        |      |  |   |        |  
|Net increase (decrease) in deposits                                                       |  |                                 | 15,646 |      |  |   | (437   | )
|Decrease in advances from Federal Home Loan Bank                                          |  |                                 | (1,750 | )    |  |   | (5,650 | )
|Dividends paid                                                                            |  |                                 | (152   | )    |  |   | (158   | )
|Treasury stock purchases                                                                  |  |                                 |       |      |  |   | (236   | )
|Increase in advances by borrowers
for taxes and insurance                                 |  |                                 | 224    |      |  |   | 138    |  
|                                                                                          |  |                                 |        |      |  |   |        |  
|Net cash provided by (used in) financing activities                                       |  |                                 | 13,968 |      |  |   | (6,343 | )
|                                                                                          |  |                                 |        |      |  |   |        |  
|Net increase in cash and cash equivalents                                                 |  |                                 | 1,454  |      |  |   | 1,805  |  
|Cash and cash equivalents at beginning of period                                          |  |                                 | 10,267 |      |  |   | 3,135  |  
|                                                                                          |  |                                 |        |      |  |   |        |  
|Cash and cash equivalents at end of period                                                |  | $                               | 11,721 |      |  | $ | 4,940  |  
|                                                                                          |  |                                 |        |      |  |   |        |  
|Supplemental
          disclosures of cash flow information:                              |  |                                 |        |      |  |   |        |  
|Cash paid for interest                                                                    |  | $                               | 4,856  |      |  | $ | 4,143  |  
|Cash paid for income taxes                                                                |  |                                 | 581    |      |  |   | 255    |  
|                                                                                          |  |                                 |        |      |  |   |        |  
|Supplemental
          disclosure of noncash investing and
          financing activities |  |                                 |        |      |  |   |        |  
|Transfers of real estate acquired through foreclosure from loans receivable               |  |                                 |       |      |  |   | 315    |  

See Notes to Consolidated Financial Statements

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##### Table of Contents






BROADWAY FINANCIAL CORPORATION
AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2001



|1. |  | In the opinion of 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 at September 30, 2001 and the results of its
operations for the three months and nine months ended September 30,
2001 and 2000, and its cash flows for the nine months ended September
30, 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 and nine months ended September 30,
2001 are not necessarily indicative of the results to be expected for
the full year.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|2. |  | Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|  
|   |  | For purposes of reporting cash flows on the Consolidated Statements of
Cash Flows, cash and cash equivalents include cash and federal funds
sold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|  
|3. |  | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|   |  | In July 2001, the Financial Accounting Standards Board (FASB) issued
Statement No. 142 (SFAS No. 142), Goodwill and Other Intangible Assets.
SFAS No. 142 will require that goodwill and intangible assets with
indefinite useful lives no longer be amortized, but instead be tested for
impairment at least annually in accordance with the provisions of SFAS
No. 142. SFAS No. 142 will also require that intangible assets with
estimable useful lives be amortized over their respective estimated
useful lives to their estimated residual values, and reviewed for
impairment in accordance with FASB Statement No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of. The Company is required to adopt the provisions of SFAS No. 142
effective January 1, 2002. Management does not expect the implementation
of this Statement to have a material impact on the Companys consolidated
financial statements.                             
|  
|   |  | In June 2001, the Financial Accounting Standards Board issued Statement
No. 143 (SFAS No. 143), Accounting for Asset Retirement Obligations,
which requires that the fair value of a liability for an asset retirement
obligation be recognized in the period in which it is incurred if a
reasonable estimate of fair value can be made. The associated asset
retirement costs would be capitalized as part of the carrying amount of
the long-lived asset and depreciated over the life of the asset. The
liability is accreted at the end of                                                                                                                                                                                                                                                                                                                                                                                                                                                         

7



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##### Table of Contents





| |  | each period through charges to operating expense. If the obligation is
settled for other than the carrying amount of the liability, the Company
will recognize a gain or loss on settlement. The provisions of SFAS No.
143 are effective for fiscal years beginning after June 15, 2002.
Management has not yet determined the impact, if any, of adoption of SFAS
No. 143.                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | In August 2001, the Financial Accounting Standards Board issued Statement
No. 144 (SFAS No. 144), "Accounting for the Impairment or Disposal of
Long-Lived Assets. SFAS No. 144 addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. While
SFAS No. 144 supersedes FASB Statement No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of, it retains many of the fundamental provisions of that Statement.
The statement is effective for fiscal years beginning after December 15,
2001 and must be adopted as of the beginning of the fiscal year.
Management does not expect the implementation of SFAS No. 144 to have a
material impact on the Companys consolidated financial statements.

8



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##### Table of Contents






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

General

Broadway Financial Corporation 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 September 30, 2001, Broadway Federal operated five
retail banking offices and 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). BankSmart ceased its primary operations as of March 31, 2001.
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 the
Banks non-interest expenses, which consist principally of employee
compensation and benefits, occupancy expenses and 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.

9



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##### Table of Contents



Comparison of Operating Results for the three months and nine months ended
September 30, 2001 and September 30, 2000

General

The Company recorded net earnings of $240,000, or $0.26 per diluted common
share, and $577,000, or $0.63 per diluted common share, respectively, for the
three months and nine months ended September 30, 2001, as compared to net
earnings of $282,000, or $0.32 per diluted common share, and $677,000, or $0.74
per diluted common share, respectively, for the three months and nine months
ended September 30, 2000. Net earnings for the three-month and nine-month
periods ended September 30, 2000 included non-recurring income of $178,000
representing proceeds from insurance reimbursements. Excluding the
non-recurring income, comparative net earnings for the three-month and
nine-month periods ended September 30, 2000 would have been $185,000, or $0.20
per diluted common share and $575,000, or $0.63 per diluted common share,
respectively.

Interest Income

Interest income for the three months and nine months ended September 30, 2001
totaled $3.3 million and $9.8 million, respectively, as compared to $3.0
million and $9.1 million, respectively, for the same periods in 2000. The
increases were primarily the result of an increase in average interest earning
assets of $18.6 million and $10.4 million, respectively, for the three months
and nine months ended September 30, 2001 as compared to the same periods in
2000. The increase in average interest earning assets during the three months
and nine months ended September 30, 2001 was funded by an increase in savings
deposits.

Interest Expense

Interest expense increased by $109,000 and $619,000, respectively, for the
three months and nine months ended September 30, 2001 as compared to the same
periods in 2000. The increases in interest expense were due to an increase in
interest on deposits offset by a decrease in interest on borrowings. The
increase in interest on deposits was due to an increase in average deposits of
$22.0 million and $16.7 million, to $154.7 million and $150.8 million,
respectively, for the three months and nine months ended September 30, 2001, as
compared to $132.7 million and $134.1 million for the same periods in 2000.
Average borrowings decreased by $4.8 million and $5.5 million, respectively,
for the three months and nine months ended September 30, 2001 as compared to
the same periods in 2000. The impact of the increase in interest expense is
also reflected in the change in the average cost of deposits and borrowings,
which for the nine months ended September 30, 2001 increased 25-basis points to
4.03% from 3.78% for the same period in 2000. Reflective of the current
interest rate environment, for the three months ended September 30, 2001 the
average cost of deposits and borrowings decreased 14-basis points to 3.82% from
3.96% for the same period in the prior year.

10



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##### Table of Contents



Provision for Loan Losses

The provision for loan losses decreased by $60,000 and $165,000, respectively,
from $90,000 and $270,000, respectively, for the three months and nine months
ended September 30, 2000 to $30,000 and $105,000, respectively, for the same
periods in 2001.

As of September 30, 2001 the Companys allowance for loan losses totaled $1.5
million, representing a $105,000 increase from the balance at December 31,
2000. The allowance for loan losses represents 1.08% of gross loans at
September 30, 2001 compared to 1.10% at December 31, 2000. The allowance for
loan losses was 144.92% of non-accrual loans at September 30, 2001, compared to
224.84% at December 31, 2000.

Total non-performing assets, consisting of non-accrual loans and real estate
acquired through foreclosure (REO), increased by $421,000, from $632,000 at
December 31, 2000 to $1.1 million at September 30, 2001. The increase resulted
from the addition of one secured non-accrual commercial real estate loan,
offset by a decrease of $187,000 in the outstanding balances of the Banks
unsecured non-accrual loans. The one secured commercial loan added to
non-accrual status was a $616,000 loan secured by church property located in
Los Angeles. At September 30, 2001 management did not consider this loan to be
impaired and as a result no impairment loss was recorded. After the end of the
quarter, the borrowers paid accrued interest through September 1, 2001 and all
accrued late fees on the loan. Unsecured non-accrual loans totaled $280,000 at
September 30, 2001. The Company determined that these loans are impaired and
has established an impairment loss of $280,000. As a percentage of total
assets, non-performing assets were 0.58% at September 30, 2001, compared to
0.38% at December 31, 2000

The provision for loan losses for the quarter ended September 30, 2001 results
from managements ongoing assessment of the Companys level of credit risk
inherent in the 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 September 30, 2001, but there can
be no assurance that actual losses will not exceed the estimated amounts. In
addition, the Office of Thrift Supervision and the Federal Deposit Insurance
Corporation periodically review the Company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 judgments of
the information available to them at the time of the examination.

Non-Interest Income

Non-interest income decreased by $184,000 and $126,000, respectively, for the
three months and nine months ended September 30, 2001, as compared to the same
periods in 2000. The decreases in non-interest income for the three months and
nine months ended September 30, 2001 were due primarily to the decrease in
non-recurring insurance reimbursement income

11



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##### Table of Contents



discussed above. Service charges
also decreased $15,000, or 8.15%, to $169,000 for the three months ended
September 30, 2001, from $184,000 for the same period in 2000. The decrease in
service charges was due to lower loan servicing and other loan fees earned
during the quarter. The reduction in loan servicing fees is attributable to
Broadways second quarter purchase of $8.0 million of loans that it had
previously serviced for others. For the nine months ended September 30, 2001
service charges increased $44,000, or 9.89%, to $489,000, from $445,000 for the
same period in 2000. The increase is due to an increase in fees earned from
customers on deposit accounts, including checking and passbook account fees.

Non-Interest Expense

Non-interest expense increased by $126,000, or 9.36%, to $1.5 million for the
three months ended September 30, 2001, from $1.3 million for the same period in
2000. The increase in non-interest expense primarily resulted from increases
in compensation and benefits, real estate operations, net and other
non-interest expenses. For the nine months ended September 30, 2001,
non-interest expense increased by $290,000, or 6.95%, to $4.5 million, from
$4.2 million for the same period in 2000. The increase primarily resulted from
increases in compensation and benefits and real estate operations, net.

Compensation and benefits expense increased by $35,000 and $258,000,
respectively, for three months and nine months ended September 30, 2001, as
compared to the same periods in 2000. The increases were principally due to a
higher accrual for bonuses, vested stock grants, merit salary increases and
employment of replacement staff at higher market salaries.

During the three-month and nine-month periods ended September 30, 2001 the
Company had no real estate operations, net as there were no real estate
acquired through foreclosure as of September 30, 2001. Real estate operations,
net in 2000 reflected the non-recurring gains on sales of real estate acquired
through foreclosure of $36,000 and $78,000 for the three-month and nine-month
periods ended September 30, 2000.

Other non-interest expense increased by $52,000 and $16,000, respectively, for
the three months and nine months ended September 30, 2001 as compared to the
same periods in 2000. The $52,000 increase from $95,000 for the three months
ended September 30, 2000 to $147,000 for the same period in 2001 primarily
included a $47,000 increase in losses from savings operations and a $5,000
accrual to write off leasehold improvements at the Banks Watts branch that the
Bank decided to abandon. The Watts branch was closed on October 31, 2001.

The $16,000 increase in other non-interest expenses for the nine months ended
September 30, 2001 as compared to the same period in 2000 was primarily due to
a $73,000 increase in losses from savings operations, and an accrual of $55,000
to write off leasehold improvements for the Watts branch closure, offset by a
reduction in costs associated with unrealized losses on loans
held-for-sale,
which totaled $116,000 for the nine months ended September 30, 2000, compared
to zero for the same period in 2001.

12



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##### Table of Contents



Income Taxes

The Companys effective tax rate was approximately 41% for the three months and
nine months ended September 30, 2001, compared to approximately 45% and 43%,
respectively, for the same periods in the prior year. Broadway Federal
computed its 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

13



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##### Table of Contents



Comparison of Financial Condition at September 30, 2001 and December 31, 2000

Total assets at September 30, 2001 were $182.0 million compared to $167.9
million at December 31, 2000, representing an increase of $14.1 million. Net
loans receivable (excluding loans held for sale) increased from $126.8 million
at December 31, 2000 to $131.5 million at September 30, 2001 as a result of
$17.8 million in new loan originations, offset by $13.0 million in principal
repayments and a $105,000 of provision for loan losses. Loans held for sale at
September 30, 2001 totaled $7.1 million as compared to $59,000 at December 31,
2000. During the period, loans originated that were classified as
held-for-sale totaled $299,000, loans purchased totaled $8.0 million, principal
repayments totaled $900,000 and loans sold totaled $358,000.

Total liabilities at September 30, 2001 were $167.5 million compared to $153.9
million at December 31, 2000. The $13.6 million increase was primarily
attributable to an increase in deposits and advance payments from borrowers for
taxes and insurance, offset by a decrease in advances from Federal Home Loan
Bank and other liabilities.

Total capital at September 30, 2001 was $14.5 million compared to $14.0 million
at December 31, 2000. The $570,000 increase was primarily due to net earnings
for the period, the issuance of treasury stock for stock grants and the
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 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 18.97% and 19.83%,
for the three-month and nine-month periods ended September 30, 2001, as
compared to 11.78% and 11.66% for the same periods during 2000. The Banks
liquidity ratio included qualifying unpledged marketable securities being
held-to-maturity. The increase is due to the fact that at September 30, 2001,
liquid assets, which are a component of the liquidity calculation, included
$7.1 million in Federal Funds. At September 30, 2000 included were $1.0
million in Federal Funds in liquid assets. Subsequent to September 30, 2001,
Federal Funds were significantly reduced due to increased short-term
investments, deposit portfolio reductions and loan fundings.

The Bank has other sources of liquidity in the event that a need for additional
funds arises, including FHLB advances. At September 30, 2001 and December 31,
2000, FHLB advances totaled $8.3 million and $10.0 million, respectively.
Broadway Federal had borrowed from the FHLB to meet its short-term loan funding
needs. Other sources of funds also include principal repayments on
mortgage-backed securities.

14



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##### Table of Contents



Since December 31, 2000 there has been no material change in the Companys
interest rate sensitivity as of September 30, 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.

Broadway Federal was in compliance with all capital requirements in effect at
September 30, 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             |  | Actual          
|Regulatory Capital Ratios |  | Minimum     |      | "Well-capitalized" |  | At September 30,
|for Broadway Federal      |  | Requirement |      | Requirement        |  | 2001            
|                          |  |             |      |                    |  |                 
|Tangible capital          |  |             | 1.50 | %                  |  |                  | N/A   |   |  |  | 6.90  | %
|Core capital              |  |             | 4.00 | %                  |  |                  | 5.00  | % |  |  | 6.90  | %
|Risk-based capital        |  |             | 8.00 | %                  |  |                  | 10.00 | % |  |  | 11.84 | %
|Tier 1 Risk-based capital |  |             | N/A  |                    |  |                  | 6.00  | % |  |  | 10.77 | %

15



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##### Table of Contents






PART II. OTHER INFORMATION




Item 1. LEGAL PROCEEDINGS

None




Item 2. CHANGES IN SECURITIES

None




Item 3. DEFAULTS ON SENIOR SECURITIES

None




Item 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

None




Item 5. OTHER INFORMATION

None




Item 6. EXHIBITS AND REPORTS ON FORM 8-K

None

16



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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 CORPORATION                              
|                       |  |                                                             
|                       |  |                                                             
|Date: November 9, 2001 |  | By: /s/ PAUL C. HUDSON                                      
|                       |  | Paul C. Hudson
        President and Chief Executive Officer
|                       | 
|                       |  |                                                             
|                       |  |                                                             
|                       |  | By: /s/ BOB ADKINS                                          
|                       |  | Bob Adkins
        Chief Financial Officer                  
|                       | 

17