BankFinancial (BFIN) in Burr Ridge, Ill., reported a decrease in quarterly profit because of lower net interest income.
The $1.5 billion-asset company's second-quarter earnings fell 91% from a year earlier, to $76,000.
Net interest income fell 23% from the second quarter of 2012, to $11.3 million, as average earning assets fell $66.3 million, or 5%, to $1.4 billion. The net interest margin compressed 79 basis points from a year earlier, to 3.25%.
Improved credit quality partially offset the decline in net interest income. The loan-loss provision was $206,000, compared to $1.7 million a year earlier, and net chargeoffs were $562,000, down from $2.5 million. BankFinancial sold $22.7 million of troubled loans in January.
Noninterest income rose 6% from a year earlier, to $1.5 million. Noninterest expense fell 11% from the second quarter of 2012, to $12.6 million.