Aided by two acquisitions and sharply lower deposit costs, BankFinancial Corp. in Burr Ridge, Ill., swung to a profit of $1 million in the second quarter from a loss of $288,000 in the same period last year.
In March, BankFinancial bought the $219 million-asset Downers Grove National Bank in Westmont, Ill., and acquired a $152 million loan portfolio, consisting primarily of multi-family loans, from Citibank. Those two deals boosted the loan portfolio by 23% year over year, to $1.3 billion, and helped increase its interest income by 15.5%, to $19 million.
The loan growth, combined with a 48% decline in its interest expense, helped widen BankFinancial's net interest margin by 85 basis points year over year, to 4.38%.
Credit quality did weaken, however, due in part to the Downers Grove acquisition. At June 30, BankFinancial's ratio of nonperforming assets to total assets was 5.32%, up from 3.94% six months earlier.
BankFinancial is a $1.6 billion-asset thrift with nearly two-dozen branches in the Chicago area.