BankFinancial Corp. in Burr Ridge, Ill., said Monday that it lost $25.1 million in the third quarter as a result of a large impairment charge it took on its holdings in Freddie Mac preferred stock.
The $1.4 billion-asset BankFinancial earned $2.7 million in last year's third quarter.
The thrift company is permitted to write off $10.1 million of the loss under a change in tax rules enacted as part of the Emergency Economic Stabilization Act of 2008 that Congress passed in early October, but it has elected to take the tax benefit in the fourth quarter.
BankFinancial also said it was hurt by weakening credit quality. It set aside $1.4 million for loan losses in the quarter, triple the provision for last year's third quarter.
Despite the large quarterly loss, BankFinancial remains well capitalized, with a capital-to-risk-weighted-assets ratio of 15.72% at Sept. 30.
