Broadway Financial Corporation Announces FNMA Preferred Stock Investment

Business Wire, Dec 31, 2002

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Dec. 31, 2002

Broadway Financial Corporation (the "Company") (Nasdaq:BYFC), the holding company of Broadway Federal Bank, f.s.b. (the "Bank"), today announced that on December 30, 2002 Fannie Mae invested $1,000,000 into the Company in return for non-voting Preferred Stock of Broadway Financial Corporation. The Preferred Stock will bear a non-cumulative dividend of 5% per annum.

President and Chief Executive Officer, Paul C. Hudson, stated, "We are appreciative and pleased with Fannie Mae's support of our housing programs. It also is a tangible statement that Fannie Mae supports the Bank's mission to profitably serve the financial needs of underserved communities."

Broadway Federal Bank, f.s.b. is a community-oriented savings bank, which primarily originates residential mortgage loans and conducts funds acquisition in the geographic areas known as Mid-City and South Los Angeles. The Bank operates four full service branches, three in the city of Los Angeles, and one located in the nearby city of Inglewood, California. At September 30, 2002, the Bank met the capital requirements necessary to be deemed "well capitalized" for regulatory capital purposes.

Shareholders, analysts and others seeking information about the Company are invited to write to: Broadway Financial Corporation, Investor Relations, 4800 Wilshire Blvd., Los Angeles, CA 90010, or visit our website at www.broadwayfed.com.