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BankFinancial Closes Bulk Sales Valued at $22.7M

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BankFinancial Corporation (Nasdaq: BFIN) ("The Company") today announced the completion of two bulk sales of certain nonperforming assets with a total carrying value of $22.7 million, consisting of $22.0 million of nonperforming loans and $710,000 of other real estate owned. The bulk sales are expected to result in fourth quarter 2012 pre-tax charges of approximately $11.5 million.

Of the assets sold in the bulk sales, $7.4 million represented multifamily loans or properties, $13.0 million represented commercial real estate loans, $2.1 million represented a land loan, and the balance represented a single-family residential loan. Based on September 30, 2012 financial statement information, these bulk sales achieved a 49.5% reduction of our nonperforming multifamily assets, a 39.5% reduction of our nonperforming commercial real estate assets, and a 19.7% reduction of our nonperforming land assets.

The nonperforming assets that were targeted for disposition in these sales generally represented assets that involved significant carrying costs and/or litigation expenses and presented the likelihood of an extended or uncertain resolution period. The sales were implemented to materially reduce future nonperforming asset expenses and accelerate the return to the Company's historical asset quality levels. In furtherance of these goals, the Company will continue to pursue resolutions of its remaining non-performing and classified assets using resolution techniques appropriate for individual assets or asset types.

Posted-In: News Asset Sales

 

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