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

                                   FORM 10-QSB
                                   (Mark One)

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

                  For the quarterly period ended June 30, 2002

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

               For transition period from__________ to___________

                         Commission file number 0-27464

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

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

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

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

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

State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest  practicable  date:  904,738  shares of the  Company's
Common Stock, par value $0.01 per share,  were issued and outstanding as of July
31, 2002.

           Transitional Small Business Disclosure Format (Check one):

                                 Yes [ ] No [x]



                                        1
<PAGE>


                                      INDEX



                                                                     Page
PART I    FINANCIAL INFORMATION

   Item 1. Financial Statements
           Consolidated Balance Sheets (unaudited)
           as of June 30, 2002 and December 31, 2001                   3

           Consolidated  Statements of  Operations
           and  Comprehensive  Earnings (unaudited)
           for the three months and six months ended June 30,
           2002 and June 30, 2001                                      4

           Consolidated Statements of Cash Flows
           (unaudited) for the six months ended
           June 30, 2002 and June 30, 2001                             5


           Notes to 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                                       14

   Item 2.    Changes in Securities                                   14

   Item 3.    Defaults Upon Senior Securities                         14

   Item 4.    Submission of Matters to a Vote of
                 Security Holders                                     14

   Item 5.    Other Information                                       15

   Item 6.    Exhibits and Reports on Form 8-K                        15





                                        2
<PAGE>

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

                                                                                  June 30,       December 31,
                                                                                    2002             2001
Assets:
<S>                                                                             <C>              <C>
Cash                                                                            $     4,317      $    2,639
Fed funds sold                                                                          500           2,600
Interest bearing deposits                                                             3,002           5,028
Investment securities held to maturity                                                2,000               -
Investment securities available for sale                                              8,669           4,604
Mortgage-backed securities held to maturity                                          13,650          13,931
Loans receivable, net                                                               134,086         133,937
Loans receivable held for sale, at lower of cost or fair value                        4,311           7,362
Accrued interest receivable                                                             935             943
Real estate acquired through foreclosure, net                                           107               -
Federal Home Loan Bank Stock, at cost                                                 1,439           1,399
Office properties and equipment, net                                                  5,903           6,001
Other assets                                                                            488             457

Total assets                                                                    $   179,407      $  178,901

<CAPTION>

Liabilities and stockholders' equity

<S>                                                                             <C>              <C>
Deposits                                                                        $   150,981      $  151,156
Advances from Federal Home Loan Bank                                                 10,750          11,000
Advance payments by borrowers for taxes and insurance                                   262             224
Deferred income taxes                                                                   572             556
Other liabilities                                                                     1,689           1,337

Total liabilities                                                                   164,254         164,273
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 June 30,2002 and December 31, 2001                                      1               1
    Common stock, $.01 par value, authorized 3,000,000 shares; issued
        and outstanding 904,738 shares at June 30, 2002 and 910,538 shares at
        December 31, 2001.                                                               10              10
   Additional paid-in capital                                                         9,494           9,481
   Accumulated other comprehensive earnings, net of taxes                                24               2
   Retained earnings-substantially restricted                                         6,350           5,804
   Treasury stock-at cost, 56,997 shares at June 30, 2002 and 51,197
        shares at December 31, 2001                                                    (553)           (469)
   Unearned Employee Stock Ownership Plan shares                                       (173)           (201)

Total stockholders' equity                                                           15,153          14,628


Total liabilities and stockholders'  equity                                     $   179,407      $  178,901

</TABLE>

                 See Notes to Consolidated Financial Statements

                                       3

<PAGE>


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

                                                                    Three Months ended June 30,    Six Months ended June 30,
                                                                       2002          2001             2002           2001


<S>                                                                 <C>           <C>              <C>           <C>
Interest on loans receivable                                        $    2,753    $    2,860       $    5,576    $    5,595
Interest on investment securities held to maturity                          21            42               26           137
Interest on investment securities available for sale                        56            36               96            36
Interest on mortgage-backed securities                                     202           175              404           345
Other interest income                                                       63           192              152           426

Total interest income                                                    3,095         3,305            6,254         6,539


Interest on deposits                                                       966         1,475            2,013         2,965
Interest on borrowings                                                     122           146              251           312

Total interest expense                                                   1,088         1,621            2,264         3,277

Net interest income before provision for loan losses                     2,007         1,684            3,990         3,262

Provision for loan losses                                                    -            45                -            75

Net interest income after provision for loan losses                      2,007         1,639            3,990         3,187

Noninterest income:
     Service charges                                                       211           175              432           320
     Gain on loans receivable held for sale                                  1             -                -             -
     Other                                                                  18            23               33            52
Total noninterest income                                                   230           198              465           372

Noninterest expense:
     Compensation and benefits                                             876           807            1,804         1,638
     Occupancy expense, net                                                343           309              645           563
     Advertising and promotional expense                                    41            37               61            87
     Professional services                                                 106            72              199           113
     Real estate operations, net                                            (5)            -               (5)            -
     Contracted security services                                           42            41               82            80
     Telephone and postage                                                  32            58               77           114
     Stationary, printing and supplies                                      28            30               59            54
     Other                                                                 241           227              446           339
Total noninterest expense                                                1,704         1,581            3,368         2,988

Earnings before income taxes                                               533           256            1,087           571

Income taxes                                                               211           100              439           234

Net earnings                                                               322           156              648           337

Other comprehensive income (loss):
  Unrealized income (loss) on securties available for sale                  47            (5)              37            (5)
  Income tax (expenses) benefits                                           (20)            2              (15)            2
Other comprehensive income (loss)                                           27            (3)              22            (3)
<CAPTION>

<S>                                                                 <C>           <C>              <C>           <C>
Comprehensive earnings                                              $      349    $      153       $      670    $      334
<CAPTION>

<S>                                                                 <C>           <C>              <C>           <C>
Net earnings                                                        $      322    $      156       $      648    $      337
Dividends paid on preferred stock                                           (7)           (7)             (14)          (14)
<CAPTION>

<S>                                                                 <C>           <C>              <C>           <C>
Earnings available to common shareholders                           $      315    $      149       $      634    $      323

Earnings per share-basic                                                  0.35          0.17             0.71          0.37
Earnings per share-diluted                                                0.35          0.17             0.70          0.37
Dividend declared per share-common stock                                  0.05          0.05             0.10          0.10
Basic weighted average shares outstanding                              890,284       876,349          890,722       875,538
Diluted weighted average shares outstanding                            902,858       876,349          902,077       875,538

</TABLE>

                 See Notes to Consolidated Financial Statements

                                       4
<PAGE>



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


<TABLE>
<CAPTION>

                                                                            Six months ended June 30,
                                                                             2002            2001


Cash flows from operating activities

<S>                                                                        <C>          <C>
Net earnings                                                               $    648     $      337

Adjustments to reconcile net earnings to net cash provided by
(used in) operating activities:
      Depreciation                                                              216            185
      Amortization of premiums and discounts on loans purchased                (110)             2
      Amortization of net deferred loan origination fees                       (175)            40
      Amortization of discounts and premium on  investment securities
         and mortgage-backed securities                                          83             (2)
      Amortization of deferred compensation                                      42             31
      Gain on sale of securities available for sale                              (5)             -
      Loss (gain) on disposal of fixed assets                                    63            (15)
      Provision for loan losses                                                   -             75
      Loans originated for sale                                                (557)          (126)
      Proceeds from sale of loans receivable held for sale                      645            185
      Purchases of loans held for sale                                            -         (8,001)
      Principal repayment on loans held for sale                              2,963          1,106
      Changes in operating assets and liabilities:
         Accrued interest receivable                                              8             76
         Other assets                                                           (31)           186
         Accrual for branch closure                                               -             50
         Deferred income taxes                                                    -             (2)
         Other liabilities                                                      352           (466)

Total adjustments                                                             3,494         (6,676)

Net cash  provided by (used in) operating activities                          4,142         (6,339)

Cash flows from investing activities
Loans originated, net of refinances                                         (12,002)       (11,177)
Principal repayment on loans                                                 12,031          7,882
Purchases of investment securities held-to-maturity                          (2,000)        (2,000)
Purchases of mortgage-backed securities held-to-maturity                     (2,093)        (1,323)
Purchases of securities available for sale                                   (8,028)        (4,600)
Proceeds from maturities of interest bearing deposits                         2,026              -
Proceeds from maturities of investment securities held-to-maturity                -         10,624
Proceeds from maturities of mortgage-backed securities held-to-maturity       2,291          1,572
Proceeds from sale of securities available for sale                           4,005              -
Purchase of Federal Home Loan Bank stock                                        (40)           (44)
Proceeds from sale of fixed assets                                                -            210
Capital expenditures for office properties and equipment                       (181)          (136)

Net cash provided by (used in) investing activities                          (3,991)         1,008

</TABLE>

                 See Notes to Consolidated Financial Statements

                                        5
<PAGE>

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

<TABLE>
<CAPTION>

                                                                               Six months ended June 30,
                                                                                  2002         2001

Cash flows from financing activities
<S>                                                                             <C>          <C>
Net increase (decrease) in deposits                                             $    (175)   $  10,599
Decrease in advances from Federal Home Loan Bank                                     (250)      (1,750)
Dividends paid                                                                       (102)        (101)
Purchases of treasury stock                                                           (84)           -
Increase (decrease) in advances by borrowers
     for taxes and insurance                                                           38          (17)

Net cash provided by (used in) financing activities                                  (573)       8,731

Net increase (decrease) in cash and cash equivalents                                 (422)       3,400
Cash and cash equivalents at beginning of period                                    5,239       10,267
<CAPTION>

<S>                                                                             <C>          <C>
Cash and cash equivalents at end of period                                      $   4,817    $  13,667

Supplemental disclosures of cash flow information:
<CAPTION>

<S>                                                                             <C>          <C>
Cash paid for interest                                                          $   2,387    $   3,286
<CAPTION>

<S>                                                                             <C>          <C>
Cash paid for income taxes                                                      $     309    $     649

Supplemental disclosure of noncash investing and
<CAPTION>
               financing activities
<S>                                                                             <C>          <C>
Transfers of loans to real estate acquired through foreclosure                  $     107    $       -

</TABLE>

                 See Notes to Consolidated Financial Statements

                                        6
<PAGE>


                 BROADWAY FINANCIAL CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)
                                  JUNE 30, 2002

NOTE (1)  -  Basis of Financial Statement Presentation

The  unaudited  consolidated  financial  statements  included  herein  have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States of America for interim  financial  statements  and pursuant to the
instructions  for Form 10-QSB and rules and  regulations  of the  Securities and
Exchange  Commission.  In the opinion of the  management  of Broadway  Financial
Corporation  (the "Company"),  the preceding  unaudited  consolidated  financial
statements  contain  all  material  adjustments,  consisting  solely  of  normal
recurring  accruals,  necessary  to present  fairly the  consolidated  financial
position of the Company and its subsidiaries at June 30, 2002 and the results of
their operations and comprehensive  earnings for the three months and six months
ended June 30, 2002 and 2001, and their cash flows for the six months ended June
30, 2002 and 2001. 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, 2001 and,  accordingly,  should be read in  conjunction  with such
audited  statements.  The  results of  operations  for the three  months and six
months ended June 30, 2002 are not  necessarily  indicative of the results to be
expected for the full year.

NOTE (2) - Earnings Per Share

Basic  earnings per share were  computed by dividing  net earnings  available to
common  shareholders  by the weighted  average  number of shares of Common Stock
outstanding  for the period  (890,284  and 876,349  shares for the three  months
ended June 30, 2002 and 2001,  and 890,722 and 875,538 shares for the six months
ended June 30, 2002 and 2001, respectively). Diluted earnings per shares reflect
the potential  dilution  that could occur if  securities  or other  contracts to
issue  common  stock were  exercised or  converted  into common  stock.  Diluted
earnings per share  additionally  included  the dilutive  effect of Common Stock
equivalents (902,858 and 876,349 shares for the three months ended June 30, 2002
and 2001 and 902,077 and 875,538  shares for the six months ended 2002 and 2001,
respectively).

NOTE (3) - Cash and Cash Equivalents

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




                                        7

<PAGE>


NOTE (4) - Current Accounting Issues

In April 2002, the FASB issued SFAB No. 145.  Statement of Financial  Accounting
Standards No. 145,  "Rescission of SFAS Statements No. 4, 44, and 64,  Amendment
of SFAS  Statement No. 13, and  Technical  Corrections"  ("SFAS 145"),  updates,
clarifies and simplifies existing accounting  pronouncements.  SFAS 145 rescinds
SFAS No. 4, "Reporting Gains and Losses from  Extinguishment  of Debt." SFAS 145
amends SFAS No. 13,  "Accounting  for  Leases," to  eliminate  an  inconsistency
between the required accounting for sale-leaseback transactions and the required
accounting for certain lease  modifications  that have economic effects that are
similar to  sale-leaseback  transactions.  The provisions of SFAS 145 related to
SFAS  No. 4 and SFAS  No.  13 are  effective  for  fiscal  years  beginning  and
transactions occurring after May 15, 2002, respectively.  Management anticipates
the  adoption  of SFAS  145 will not have a  material  impact  on the  Company's
consolidated financial statement.

In June 2002, the FASB issued SFAS No. 146. Accounting for Costs Associated with
Exit or Disposal  Activities"  ("SFAS 146") which  requires the  recognition  of
costs associated with exit or disposal  activities when they are incurred rather
than at the date of a commitment to an exit or disposal plan.  SFAS 146 replaces
Emerging  Issues Task Force ("EITF") Issue No. 94-3  "Liability  Recognition for
Certain  Employee  Termination  Benefits  and  Other  Costs to Exit an  Activity
(Including Certain Costs Incurred in a  Restructuring)."  The provisions of SFAS
146 are to be applied to prospectively to exit or disposal activities  initiated
after December 31, 2002.  Management  anticipates  the adoption of SFAS 146 will
not have a material impact on the Company's consolidated financial statement.



NOTE (5) - Critical Accounting Policy

Accounting for the allowance for loan losses involves significant  judgments and
assumptions by management, which have a material impact on the carrying value of
net  loans.  Management  considers  this  accounting  policy  to  be a  critical
accounting policy. The judgments and assumptions used by management are based on
historical  experience,  current economic trends, the borrowers ability to repay
and repayment performance and other factors, which are believed to be reasonable
under the circumstances as described under the heading "Loans Receivable and the
Allowance  for Loan  Losses" in the Note to  Consolidated  Financial  Statements
included  in the  Company's  Annual  Report on Form  10-KSB  for the year  ended
December 31, 2001.




                                        8


<PAGE>


                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

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

General

Broadway  Financial  Corporation  (the  "Company")  is primarily  engaged in the
savings and loan business through its wholly owned subsidiary,  Broadway Federal
Bank,  f.s.b.  ("Broadway  Federal"  or  "the  Bank").  Broadway  Federal  is  a
community-oriented   savings  institution   dedicated  to  serving  the  African
American,  Hispanic  and  other  communities  of  Mid  and  South  Los  Angeles,
California.  Broadway Federal's business is that of a financial intermediary and
consists primarily of attracting deposits from the general public and using such
deposits,  together with  borrowings  and other funds,  to make  mortgage  loans
secured by residential real estate located in Southern  California.  At June 30,
2002,  Broadway  Federal  operated four retail  banking  offices in Mid-City and
South  Central  Los  Angeles.   Broadway   Federal  is  subject  to  significant
competition from other financial institutions, and is also subject to regulation
by federal  agencies and undergoes  periodic  examinations  by those  regulatory
agencies.

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

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





                                        9
<PAGE>


Comparison  of Operating  Results for the Three Months and Six Months ended June
30, 2002 and June 30, 2001

General

The Company recorded net earnings of $322,000 and $648,000,  or $ 0.35 and $0.70
per diluted  common  share,  respectively,  for the three  months and six months
ended June 30, 2002, compared to net earnings of $156,000 and $337,000, or $0.17
and $0.37 per diluted common share,  respectively,  for the three months and six
months  ended June 30,  2001.  The  increase in net  earnings  from 2001 to 2002
resulted   primarily  from  higher  net  interest   income,   offset  by  higher
non-interest expense.

Net Interest Income

Net interest  income after  provision for loan losses  increased by $368,000 and
$803,000, or 22.45% and 25.20%, respectively, from $1,639,000 and $3,187,000 for
the three months and six months ended June 30, 2001, respectively, to $2,007,000
and  $3,990,000  for the same periods in 2002.  The  increase  was  attributable
primarily to increases  in average  interest-earning  assets of $6.9 million and
$7.7  million,  respectively,  increases in the net  interest  rate spread of 61
basis points and 68 basis  points,  respectively  and the absence of a provision
for loan  losses  for the three  months and six  months  ended June 30,  2002 as
compared to the same periods in 2001.

The net interest rate spreads for the three months and six months ended June 30,
2002  were  4.52%  and  4.51%,  respectively,   compared  to  3.91%  and  3.83%,
respectively,  for the  same  periods  in  2001.  The  increase  in  spread  was
attributable to the rapid decline in deposit cost of funds, and a slower decline
in yield on the loan portfolio.  The primary spread  (weighted  average interest
rate on loans minus  weighted  average  interest  rate on deposits)  for the six
months  ended June 30,  2002 was 5.37%  compared to 4.77% for the same period in
2001.

Non-interest Income

Non-interest  income  increased  by $32,000 and  $93,000,  or 16.16% and 25.00%,
respectively,  from  $198,000  and  $372,000 for the three months and six months
ended June 30,  2001,  to  $230,000  and  $465,000,  respectively,  for the same
periods in 2002. The increase in non-interest income was primarily  attributable
to a higher volume of service charges.

Non-interest Expense

Total  non-interest  expense  increased  from  $1,581,000 and $2,988,000 for the
three months and six months ended June 30, 2001, respectively, to $1,704,000 and
$3,368,000 for the same periods in 2002. The increase was primarily attributable
to higher  compensation and benefits expense,  higher occupancy expense,  higher
professional  service fees and higher other expense offset by lower  advertising
and promotional expense and telephone and postage.



                                       10

<PAGE>


Compensation   and  benefits   expense   increased  by  $69,000  and   $166,000,
respectively,  for three months and six months ended June 30, 2002,  as compared
to the same periods in 2001. The increase was principally due to the addition of
several  management level  personnel,  higher incentive bonus accruals and other
compensation benefits.

Occupancy  expense,  which includes  furniture,  fixture and equipment  expense,
increased  by $34,000 and  $82,000,  respectively,  for the three months and six
months ended June 30, 2002 as compared to the same periods in 2001. The increase
was  primarily  due to higher  leasing and computer  equipment  costs during the
current year.

Professional  services increased by $34,000 and $86,000,  respectively,  for the
three months and six months ended June 30, 2002, as compared to the same periods
in 2001.  For the six months ended June 30, 2002, the increase was primarily due
to a  $12,000  increase  in  legal  fees,  a  $53,000  increase  in  operational
consulting fees and a $21,000 increase in audit fees as compared to 2001.

Other non-interest expense increased by $14,000 and $107,000,  respectively, for
the three  months and six months  ended June 30,  2002,  as compared to the same
periods in 2001. The increase in other non-interest expense was primarily due to
the write off of obsolete furniture,  fixtures and equipment, and an increase in
item processing fees, offset by decreases in savings losses, loan expenses, FDIC
premium and courier service expense.

Provision for Loan Losses

The  provision for loan losses  decreased by $45,000 and $75,000,  respectively,
from  $45,000 and  $75,000,  respectively,  for the three  months and six months
ended June 30, 2001 to zero for the same periods in 2002.

As of June 30,  2002  the  Company's  allowance  for loan  losses  totaled  $1.6
million, unchanged from the balance at December 31, 2001. The allowance for loan
losses  represents  1.11% of gross loans at June 30,  2002  compared to 1.10% at
December  31, 2001.  The  allowance  for loan losses was 187.02% of  non-accrual
loans at June 30, 2002, compared to 335.68% at December 31, 2001.

Total  non-performing  assets,  consisting of non-accrual  loans and real estate
acquired through foreclosure  ("REO"),  increased by $479,000,  from $468,000 at
December  31, 2001 to $947,000 at June 30,  2002.  The  increase in  non-accrual
loans was  primarily  due to a loan  secured by a church  property.  Non-accrual
loans at June 30, 2002 included two loans  totaling  $90,000  secured by one- to
four-unit properties, one loan for $608,000 secured by a church property and two
unsecured loans totaling $142,000. There was one REO for $107,000 as of June 30,
2002. As a percentage of total assets,  non-performing assets were 0.53% at June
30, 2002, compared to 0.26% at December 31, 2001.



                                       11

<PAGE>


The lack of a  provision  for loan  losses for the  quarter  ended June 30, 2002
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 June 30, 2002, 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.

Income Taxes

The Company's effective tax rate was approximately 40%, for the three months and
six months ended June 30,  2002,  compared to 39% and 41% for the same period in
the prior year. Broadway Federal computed 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. California income taxes are reduced by tax credits
relating to the Los Angeles Revitalization Zone.

Comparison of Financial Condition at June 30, 2002 and December 31, 2001

Total assets at June 30, 2002 were $179.4 million, compared to $178.9 million at
December 31, 2001,  representing an increase of $500,000.  Net loans  receivable
(excluding  loans held for sale)  increased  from $133.9 million at December 31,
2001 to $134.1 million at June 30, 2002 as a result of $12.0 million in new loan
originations,  and a decrease in discounts  and deferred  loan fees of $285,000,
offset by $12.1 million in principal repayments.

Loans held for sale at June 30,  2002 were $4.3  million,  as  compared  to $7.4
million at December  31, 2001.  During the period,  loans  originated  that were
classified as held-for-sale totaled $557,000,  principal repayments totaled $3.0
million and loans sold totaled $645,000.

Total  liabilities  at June 30, 2002 and  December  31, 2001  amounted to $164.3
million.  Deposits decreased $175,000, or 0.12%, from $151.2 million at December
31, 2001 to $151.0  million at June 30, 2002. The Bank has targeted and has been
able to  increase  core  deposits  (NOW,  Demand,  Money  Market,  and  Passbook
accounts) by $6.0 million,  while managing rates paid on CD accounts,  including
Jumbo CDs, resulting in a decline in CD accounts of $6.2 million.  Core deposits
amounted  to 40.01% of total  deposits at June 30,  2002,  compared to 35.95% at
December 31, 2001.




                                       12

<PAGE>


FHLB  advances  decreased  by $250,000  since  December  31, 2001 as a result of
pay-offs of advances with a interest rate of 6.76%, off-set by new advances with
lower interest rates of 2.21%.

Total capital at June 30, 2002 was $15.2  million,  compared to $14.6 million at
December 31, 2001.  The $525,000  increase was primarily due to net earnings for
the period 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
primarily  include  distributions  from the Bank.  Dividends  and other  capital
distributions from the Bank are subject to regulatory restrictions.

The  Bank's  primary  sources  of funds are  deposits,  principal  and  interest
payments on loans, mortgage backed securities and investments, and advances from
the FHLB. At June 30, 2002 and December 31, 2001,  FHLB  advances  totaled $10.8
million and $11.0  million,  respectively.  Other  sources of liquidity  include
principal repayments on mortgage-backed securities and other investments.

Since  December  31,  2001 there has been no  material  change in the  Company's
interest rate sensitivity as of June 30, 2002. 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, 2001,  including  the Company's  audited  financial
statements 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
June  30,  2002,   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:



                                       13

<PAGE>
<TABLE>
<CAPTION>


                               FIRREA            FDICIA               Actual
 Regulatory Capital Ratios     Minimum      "Well-capitalized"      At June 30,
    for Broadway Federal     Requirement       Requirement             2002
--------------------------  -------------  --------------------   --------------

Tangible capital                1.50%             N/A                  7.51%

<S>                             <C>              <C>                    <C>
Core capital                    4.00%            5.00%                 7.51%

Risk-based capital              8.00%           10.00%                13.07%

Tier 1 Risk-based capital        N/A             6.00%                11.82%

</TABLE>


PART II.    OTHER INFORMATION

   Item 1.  LEGAL PROCEEDINGS

            None

   Item 2.  CHANGES IN SECURITIES

            None

   Item 3.  DEFAULTS UPON SENIOR SECURITIES

            None

   Item 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

            The Annual Meeting of  Stockholders  of the Company was held on June
            19, 2002 for the following purposes:

               (a) To elect three directors to serve until the Annual Meeting to
               be held in the  year  2005  and or  until  their  successors  are
               elected and have been qualified.

               The  Stockholders  re-elected  Mr.  Stephen N. Rippe,  Mr. Albert
               Odell Maddox and Mr.  Daniel A. Medina to serve as directors  for
               terms of three  years  each.  The number of votes for each of the
               directors is detailed below:

                        Mr. Stephen N. Rippe
                        For                        803,067
                        Abstain                      3,762


                                       14
<PAGE>


                        Mr. Albert Odell Maddox
                        For                        802,740
                        Abstain                      4,089

                        Mr. Daniel A. Medina
                        For                        803,118
                        Abstain                      3,711

               (b) To  ratify  the  appointment  of  KPMG  LLP as the  Company's
               independent auditors for 2002.

               The  Stockholders  ratified  the  appointment  of KPMG LLP as the
               Company's  independent  auditors  based upon  total  votes for of
               800,029, votes of 462 against and 6,338 Abstentions.

               (c) To amend the Long Term Incentive Plan.

               The  Stockholders   approved  the  amendment  to  the  Long  Term
               Incentive  Plan based upon total votes for of  747,500,  votes of
               53,951 against and 5,378 abstentions.

   Item 5.    OTHER INFORMATION

              None

   Item 6.    EXHIBITS AND REPORTS ON FORM 8-K

              None





                                       15

<PAGE>


                                   SIGNATURES


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




Date:   August 14, 2002



By:  /s/ PAUL C. HUDSON
Paul C. Hudson
President and Chief Executive Officer
Broadway Financial Corporation



Date:   August 14, 2002



By:  /s/ ALVIN D. KANG
Alvin D. Kang
Chief Financial Officer
Broadway Financial Corporation


                                       16

<PAGE>


                            Section 906 Certification


The  following  statement  is  provided  by the  undersigned  to  accompany  the
foregoing  Report on Form 10-QSB  pursuant to 18 U.S.C.  Section 1350 as adopted
pursuant  to section  906 of the  Sarbanes-Oxley  Act of 2002,  and shall not be
deemed filed  pursuant to any provision of the Exchange Act of 1934 or any other
securities law.

Each of the undersigned certifies that the foregoing Report on Form 10-QSB fully
complies with the  requirements of Section 13(a) of the Securities  Exchange Act
of 1934 (15 U.S.C.  Section 78m) and that the information  contained in the Form
10-QSB fairly presents,  in all material respects,  the financial  condition and
results of operations of Broadway Financial  Corporation as of and for the three
and six months ended June 30, 2002.



Date:   August 14, 2002



By:  /s/ PAUL C. HUDSON
Paul C. Hudson
President and Chief Executive Officer
Broadway Financial Corporation


Date:   August 14, 2002



By:  /s/ ALVIN D. KANG
Alvin D. Kang
Chief Financial Officer
Broadway Financial Corporation

                                       17