Beverly Hills Bancorp Inc. reported a drop in both profits and net interest income and announced that its board is reviewing strategic alternatives which could include a possible sale of the company.

The bank reported second-quarter net income of $2.1 million (11 cents per share), a 36 percent fall from $3.3 million (15 cents) from the same period a year earlier. The company blamed increases in operating expenses and a higher provision for loan losses.

The Calabasas-based holding company of the First Bank of Beverly Hills said net interest income dropped 7 percent to $8 million.

The company said in a filing with the Securities and Exchange Commission late Wednesday it retained Chicago-based Hovde Financial Inc. as its exclusive financial adviser to mull a sale of its assets.

Shares in Beverly Hills Bancorp were flat at $7.05 in trading Thursday on the Nasdaq.