BankFinancial in Olympia Fields, Ill., said it expects to record an $875,000 gain in the second quarter after selling three loans.
The $1.5 billion-asset company disclosed in a regulatory filing Friday that the performing loans, which involved one borrower, had a $16.2 million carrying value. The filing did not disclosed the buyer.
BankFinancial said that, while the loans are well secured and are supported by adequate cash flow, it was in the company's long-term best interests to "exit the relationship … due to possible future events that could increase the risk of default." The filing also expressed concern that holding onto the loans could "result in significant legal expenses and an extended resolution period."