Broadway Federal Bank
A Los Angeles community bank established to provide financial services to minority and underserved communities.
Last updated August 26, 2026
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Overview
Broadway Federal Bank was a Los Angeles-based community-oriented savings institution established in 1946 to serve minority residents and other customers who were not adequately served by existing financial institutions. It received its charter on November 26, 1946, with an initial investment of $150,000, and opened on January 11, 1947, in a three-room office at 4329 South Broadway. The institution developed within the broader history of Black-owned and Black-community-oriented banking in the United States, combining deposit-taking and mortgage lending with a civic mission focused on neighborhoods in the greater Los Angeles area. The bank's early leadership included real-estate broker and investor H. A. Howard, its first president, followed in 1949 by Dr. H. Claude Hudson, a dentist, investor, civil-rights advocate, and community leader. Under Hudson's direction, Broadway Federal expanded and became one of the largest Black-owned banking institutions in the country. In 1954, it moved into a larger building at Broadway and 45th Street. The building was redesigned by architect Paul Williams, who also served as a founding board member. Broadway Federal later opened a Mid-Town Los Angeles branch in 1966, also designed by Williams. Leadership passed through the Hudson family for several decades. Elbert T. Hudson, H. Claude Hudson's son, became chairman and chief executive in 1972. In March 1992, Paul C. Hudson succeeded him as chief executive. Soon afterward, the bank's main branch was destroyed by fire during the civil unrest that followed the verdict in the Rodney King beating trial. Management reaffirmed the institution's commitment to the community despite the damage. Broadway began converting from a mutual savings and loan association into a stock savings bank in December 1995. The initial public offering raised nearly $9 million, and Broadway Financial Corporation became the parent holding company of Broadway Federal Bank. The parent company was listed on Nasdaq under the symbol BYFC. The banking franchise remained centered on relationship-based service, residential and commercial real-estate lending, and deposit products for consumers, businesses, and nonprofit organizations. In the 2000s and 2010s, Broadway emphasized lending to low- and moderate-income communities, particularly multifamily housing and affordable-housing-related projects throughout Southern California. Its products included multifamily, residential, and commercial real-estate loans, other consumer and business credit products, checking and savings accounts, money-market accounts, certificates of deposit, and retirement accounts. The institution also developed a significant church-mortgage business, which later became the subject of a loan-officer kickback and fraud case. Broadway stopped processing new church loans in 2010 and subsequently reduced that portfolio. The bank received $15 million through the Troubled Asset Relief Program after losses associated in part with problematic loans. In 2013, the Treasury Department converted that assistance into shares, making the federal government the bank's largest single shareholder until those shares were later sold. In 2020, Broadway became the target of an unsolicited takeover effort by investor Steven A. Sugarman, but the effort ended after he sold his stake. The same year, Broadway Financial Corporation announced a proposed combination with Washington, D.C.-based City First Bank. The transaction was presented as a merger of equals that would create the largest Black-led minority depository institution in the United States, with more than $1 billion in assets. At the time described in the reference material, Broadway operated three traditional branches and one loan-production office and was characterized as the last traditionally Black-community-oriented bank headquartered west of Dallas.
History
Broadway Federal Bank was created in Los Angeles in 1946 by civic-minded founders who sought to provide banking services to minority residents and other customers underserved by established financial institutions. The institution received its charter on November 26, 1946, and began operations on January 11, 1947, from a small office on South Broadway. H. A. Howard served as its first president until 1949, when leadership passed to Dr. H. Claude Hudson. Hudson combined banking leadership with civic activism and helped guide the savings and loan through a period of expansion. In 1954, Broadway Federal acquired a larger facility at Broadway and 45th Street. Architect Paul Williams redesigned the building and also participated in the institution's founding board. The bank's physical presence expanded again in 1966 with a Mid-Town Los Angeles branch, another Williams-designed location. Broadway Federal became one of the country's larger Black-owned banking institutions and developed a durable identity tied to community investment and minority access to financial services. In 1972, H. Claude Hudson retired from active management and his son, attorney and community activist Elbert T. Hudson, became chairman and chief executive. Paul C. Hudson, another member of the family and a lawyer and community activist, succeeded him as chief executive in March 1992. The transition occurred during a difficult period for Los Angeles. A fire destroyed the bank's main branch amid unrest following the verdict in the Rodney King beating trial. Broadway Federal continued operating and publicly maintained its community commitment despite the loss of its principal facility. The institution began converting from a mutual savings and loan to a stock savings bank in December 1995. Its initial public offering raised nearly $9 million, and Broadway Financial Corporation became the publicly traded holding company for Broadway Federal Bank. During the following years, the bank continued to combine conventional banking products with a community-development orientation. Its lending activities included residential, commercial, and multifamily real estate, with a growing emphasis on low- and moderate-income neighborhoods and affordable housing in Southern California. A major setback arose from the bank's church-mortgage business. Between 2007 and 2010, a loan officer sought to divert broker rebate payments and process unqualified applications. The officer later pleaded guilty. The bank stopped processing church loans in 2010, and the portfolio was subsequently reduced. The institution reported that the loan officer had originated approximately $90 million in church loans, many of which were allegedly fraudulent, creating possible losses substantially above the amount initially identified. In connection with losses associated in part with bad loans, Broadway received $15 million in TARP assistance. The Treasury Department converted the assistance into shares in 2013, making it the largest individual shareholder until the position was later sold. Wayne-Kent A. Bradshaw joined Broadway as president and chief operating officer in 2009 and became chief executive of both the company and bank in 2012. Under his leadership, Broadway continued emphasizing multifamily lending, affordable housing, and financial services for low- and moderate-income communities. By 2020, the institution had three traditional branches and one loan production office and was described as the last traditionally Black-community-oriented bank headquartered west of Dallas. In 2020, investor Steven A. Sugarman launched an unsolicited takeover effort after becoming a substantial shareholder through entities associated with him. The effort ended when he withdrew from pursuing a buyout and sold his shares. Later that year, Broadway Financial Corporation announced a proposed merger with CFBanc Corporation, the parent of City First Bank in Washington, D.C. The proposed combination was intended to create a Black-led institution with more than $1 billion in assets and a presence on both coasts. The announcement contemplated Brian E. Argrett as chief executive of the combined organization and Wayne-Kent Bradshaw as chairman. The supplied reference material does not establish the final legal or operational outcome of the proposed merger.
- 2020
Proposed combination with City First Bank announced
[1]Broadway Financial Corporation announced a proposed merger with CFBanc Corporation to form a larger Black-led minority depository institution.
- 2013
TARP assistance converted to shares
[1]The Treasury Department converted the bank's $15 million TARP loan into equity shares.
- 2012
Bradshaw becomes chief executive
[1]Wayne-Kent A. Bradshaw became chief executive of Broadway Financial Corporation and Broadway Federal Bank.
- 2010
Church-loan processing discontinued
[1]Broadway stopped processing church loans after problems connected with that lending business.
- 1995
Conversion to stock savings bank
[1]The institution began converting from a mutual savings and loan into a stock savings bank, with an initial public offering raising nearly $9 million.
- 1992
Paul C. Hudson becomes chief executive
[1]Paul C. Hudson succeeded Elbert T. Hudson as chief executive in March.
- 1972
Hudson family leadership continues
[1]Elbert T. Hudson became chairman and chief executive after H. Claude Hudson retired from active management.
- 1966
Branch expansion begins
[1]The bank opened a Mid-Town Los Angeles branch, also designed by Paul Williams.
- 1954
Move to redesigned Broadway and 45th Street facility
[1]Broadway Federal acquired a larger building redesigned by architect Paul Williams.
- 1947
Operations begin
[1]The institution opened for business on January 11 in a three-room office at 4329 South Broadway in Los Angeles.
Products and positioning
A community-focused, Black-led banking institution serving low- and moderate-income communities, with particular expertise in multifamily and affordable-housing finance in Southern California.
Commercial real-estate lending
Multifamily housing loans
Multifamily lending was a central part of Broadway Federal's business strategy, particularly under Wayne-Kent A. Bradshaw. The bank used this capability to support housing in low- and moderate-income communities and to address Southern California's chronic need for affordable rental accommodation.
Residential lending
Residential real-estate loans
The bank offered residential mortgage and related real-estate credit products to consumers. Residential lending formed part of its broader community-banking proposition and complemented its focus on serving customers who might have faced limited access at larger financial institutions.
Commercial lending
Commercial real-estate loans
Broadway Federal provided commercial real-estate financing for businesses and other borrowers. The product line sat alongside multifamily and residential lending and supported the bank's role as a relationship-based lender for local communities and organizations.
Deposits
Deposit accounts
Deposit services included checking, savings, and money-market accounts, as well as certificates of deposit and retirement accounts. These products served consumers, businesses, and nonprofit organizations within the bank's community-oriented operating model.
Specialized real-estate lending
Church mortgage loans
Broadway Federal historically originated mortgages for churches. The business was discontinued in 2010 after a loan-officer kickback and fraudulent-loan scandal, and the remaining church-mortgage portfolio was later reduced to a small share of assets.
Controversies
2014
Church-mortgage loan officer kickback scheme
A former loan officer pleaded guilty after demanding that mortgage brokers return some or all of rebates that would ordinarily have been paid to them. The scheme involved church mortgage applications, including applications from borrowers who did not meet qualification standards. The officer reportedly received approximately $350,000, while the bank suffered at least $4.2 million in losses; later disclosures indicated that a larger portfolio of church loans could have exposed the bank to losses as high as $30 million.
Marketing campaigns
- 2020Juneteenth and Black-business support activity
United States
Increased public interest in Black-owned businesses and online activity encouraging consumers and investors to support them coincided with an exceptional rise in Broadway Financial's share price on Juneteenth.
Outcome. The reference material reports a rise of more than 300 percent to a historic high of $7.23 during the period.
Brand decisions
2020
Proposed merger with City First BankM&ABackground
Broadway Financial Corporation and CFBanc Corporation sought to combine two Black-led community banking institutions and expand their scale and geographic reach.
Action taken
Their boards unanimously approved a proposed merger of equals, with a planned bi-coastal headquarters and possible expansion into other urban markets.
Aftermath
The proposed combined institution was expected to exceed $1 billion in assets. The supplied material does not confirm the final completion or legal outcome.
Proposed combined assets. More than $1 billion (Announcement on August 26, 2020)
2013
TARP loan converted into equityOtherBackground
Broadway had received federal assistance in connection in part with losses from problematic loans.
Action taken
The Treasury Department converted a $15 million TARP loan into shares of Broadway Financial Corporation.
Aftermath
The Treasury became the company's largest single shareholder until its position was later sold.
TARP assistance. $15 million loan → Converted into shares (2013)
2010
Exit church-loan originationStrategyBackground
The bank identified serious problems in a church-mortgage operation, including alleged broker kickbacks and loans involving unqualified applicants.
Action taken
Broadway stopped processing church loans and later reduced the church-mortgage portfolio to a small proportion of assets.
Aftermath
The institution faced loan losses and related scrutiny, while shifting emphasis toward multifamily, affordable-housing, residential, and commercial real-estate lending.
1995
Convert from mutual savings and loan to stock savings bankStrategyBackground
Broadway Federal sought a stock-based ownership and capital structure after decades as a mutual savings and loan association.
Action taken
The institution began the conversion process and completed an initial public offering that raised nearly $9 million.
Aftermath
Broadway Financial Corporation became the publicly traded holding company of Broadway Federal Bank.
Initial public offering proceeds. Nearly $9 million raised (1995)
Recent events
- 2020
Broadway Financial Corporation announces combination with City First Bank[1]
M&A · Leadership change · Other
Broadway Financial Corporation announced a proposed merger with Washington, D.C.-based CFBanc Corporation, the parent of City First Bank, describing the transaction as a merger of equals intended to create the largest Black-led minority depository institution in the United States.
- 2020
Unsolicited takeover effort by Steven A. Sugarman ends[1]
M&A · Other
Steven A. Sugarman pursued an unsolicited bid after acquiring a significant stake in Broadway Federal. He later said he would not continue the buyout effort and sold his entire position.
- 2020
Broadway Federal shares experience a sharp Juneteenth-era rise[1]
Campaign · Other
Amid heightened public interest in Black-owned businesses and online campaigns encouraging support for Black businesses, the bank's publicly traded shares rose by more than 300 percent on June 19.
Sources3 sources
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