By Becky Yerak | Broadway Bank, the lender owned by the family of U.S. Senate candidate Alexi Giannoulias, saw a $75 million loss for the year.

Last week the bank was hit with an order by banking regulators to raise capital and to set aside more money for bad loans. It had lost $27.3 million in the first nine months of the year.

The bank also charged off $56 million in loans in the fourth quarter,
basically deeming them uncollectable, and $186 million in loans are
seriously delinquent.

The bank’s core capital had shrunk to about $35 million, from $83 million at the end of the third quarter.

Last week, regulators told Broadway that it had to set aside an
additional $19 million for bad loans and boost its capital ratio to 9
percent. Based on Sept. 30 numbers Broadway would have had to raise
about $30 million in additional capital, but based on fourth quarter
numbers it appears it would have to raise more than $75 million.

“We think this will be the last of our write downs and are confident
that going forward our capital will grow,” a Broadway spokesman said.  

byerak@tribune.com