Financial services provider BankFinancial Corporation completed two bulk sales of certain nonperforming assets, totaling $22.7 million.
The sales consisted of $22 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 million represented commercial real estate loans and $2.1 million represented a land loan, with the balance representing a single-family residential loan.
The bulk sales achieved a 49.5% reduction of nonperforming multifamily assets, a 39.5% reduction of our nonperforming commercial real estate assets and a 19.7% reduction of nonperforming land assets as of September 2012.
"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 report said.
BankFinancial Corporation is the holding company for BankFinancial, F.S.B., a full-service, community-oriented bank providing financial services to individuals, families and businesses through 20 full-service banking offices.