SEC Filing | BankFinancial Corporation

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bfin20210810_8k.htm

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 31, 2022

BANKFINANCIAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

Maryland

0-51331

75-3199276

(State or Other Jurisdiction

of Incorporation)

(Commission

File No.)

(I.R.S. Employer

Identification No.)


60 North Frontage Road, Burr Ridge, Illinois (Address of Principal Executive Offices)		60527 (Zip Code)

Registrant’s telephone number, including area code: (800) 894-6900

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		BFIN		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On January 31, 2022, BankFinancial Corporation (Nasdaq – BFIN) issued a press release announcing the results for the fourth quarter and year ended December 31, 2021 and issued the Quarterly Financial and Statistical Supplement for the latest five quarters. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.

BankFinancial Corporation will review results for the fourth quarter and year ended December 31, 2021 in a conference call and webcast for stockholders and analysts on Wednesday, February 2, 2022 at 9:30 a.m. Chicago, Illinois Time.

The conference call may be accessed by calling (844) 413-1780 using participant passcode 1083597. The conference call will be simultaneously webcast at www.bankfinancial.com, “Investor Relations” page.

Item 9.01 Financial Statements and Exhibits.

(a)

Not Applicable.

(b)

Not Applicable.

(c)

Not Applicable.

(d)

Exhibits.

	Exhibit No.	Description
	99.1	Press Release dated January 31, 2022
	99.2	Quarterly Financial and Statistical Supplement
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		BANKFINANCIAL CORPORATION

Dated:	January 31, 2022	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board, Chief Executive Officer and President

ex_274201.htm

Exhibit 99.1

https://cdn.kscope.io/3cd7da8111b738dbb6d2f6cd0f7f4521-bfinlogo.jpg

FOR IMMEDIATE RELEASE

BankFinancial Corporation Reports Financial Results for 2021 and

Will Host Conference Call and Webcast on Wednesday, February 2, 2022

Burr Ridge, Illinois - (January 31, 2022) BankFinancial Corporation (Nasdaq – BFIN) (the “Company”) announced today that the Company recorded net income of $7.4 million and basic and diluted earnings per common share of $0.53 for the year ended December 31, 2021. The Company recorded net income of $2.4 million and basic and diluted earnings per common share of $0.18 for the fourth quarter of 2021.

For the year ended 2021, total loans increased by $41.6 million (4.2%) to $1.044 billion. Total commercial loans and leases increased by $84.5 million (20.9%) to $489.5 million, reflecting our increasing emphasis on commercial and industrial lending. Total multi-family mortgages and nonresidential real estate loans decreased by $31.6 million (5.6%) to $529.3 million due to continued elevated portfolio prepayment rates. Total other loans decreased by $11.7 million (26.9%) due to our cessation of residential mortgage lending and continued prepayments of existing residential mortgage loans.

The Company’s asset quality remained stable in 2021. The ratio of nonperforming loans to total loans was 0.07% and the ratio of nonperforming assets to total assets was 0.09% at December 31, 2021. Nonperforming commercial-related loans represented 0.04% of total commercial-related loans at December 31, 2021. Our allowance for loan losses decreased to 0.64% of total loans as of December 31, 2021, compared to 0.77% at December 31, 2020 primarily due to the reduction of loan loss reserve increases that were made in the earlier stages of the COVID-19 global pandemic.

Total deposits increased by $94.9 million (6.8%) due to continued strong liquidity of our retail and commercial depositors. Core deposits were 86.1% of total deposits, with demand deposits representing 23.0% of total deposits.

The Company’s capital position remained strong, with a Tier 1 leverage ratio of 9.32% at December 31, 2021. Throughout 2021, the Company maintained its quarterly dividend rate at $0.10 per common share. The Company repurchased 1,541,280 common shares during the year ended December 31, 2021, which represented 10.4% of the common shares that were outstanding on December 31, 2020. The Company’s book value per share increased in 2021 by 1.6% to $11.90 per share at December 31, 2021.

For the year ended December 31, 2021, net interest income declined by $2.1 million (4.6%) due to lower average loan yields during the year and the lower average loan portfolio balance in 2021 compared to 2020. Noninterest income increased by $323,000 (6.0%) due to higher loan fee income and higher trust fee income related to our growth in commercial loans and trust assets under management. Noninterest expense increased by $2.5 million (6.5%) primarily due to personnel additions in commercial loan and lease originations, risk management, treasury services and trust department.

For the fourth quarter of 2021, net interest income increased by $357,000 due to higher investment securities interest income and loan prepayment income, offsetting a slight decline in average loans outstanding and a lower yield on loan originations compared to the third quarter of 2021. The Company increased its investment securities portfolio by $71.0 million due to new investments in U.S. Treasury securities at significantly higher market yields compared to previous periods in 2021. Noninterest income increased by $257,000 due to seasonally-higher loan and deposit services fee income. Noninterest expense increased by $183,000 primarily due to other expenses related to deposit account charge-off activity.

F. Morgan Gasior, the Chairman and CEO of the Company, said “The Company ended 2021 in a strong financial condition, with excellent asset quality and greater loan portfolio diversity related to our commercial loan growth initiatives. Our financial results for 2021 reflect in part the continuing impact of borrower and depositor liquidity, and the changes in economic activity related to the pandemic – but also our decision to invest in the resources necessary to become a performance-leading commercial lending and commercial deposit franchise. We were pleased by our significant growth in loan originations activity, but we were disappointed by the persistent high level of portfolio prepayments and low commercial line utilization in 2021. The expansion of our Equipment Finance, Commercial Finance, Treasury Services and Trust originations capabilities in 2021 will provide further positive operating leverage in 2022, particularly if market yields, liquidity and economic efficiency return to pre-pandemic levels. We remain committed to delivering strong financial returns and contributions to our shareholders and communities.”

The Company's Quarterly Financial and Statistical Supplement will be available today on BankFinancial's website, www.bankfinancial.com on the “Investor Relations” page, and through the EDGAR database on the SEC's website, www.sec.gov. The Quarterly Financial and Statistical Supplement includes comparative GAAP and non-GAAP performance data and financial measures for the most recent five quarters.

BankFinancial's management will review fourth quarter 2021 results in a conference call and webcast for stockholders and analysts on Wednesday, February 2, 2022 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 1083597. The conference call will be simultaneously webcast at www.bankfinancial.com, “Investor Relations” page. For those unable to participate in the conference call, the webcast will be archived through Wednesday, February 23, 2022 on our website.

BankFinancial Corporation is the holding company for BankFinancial, NA, a national bank providing banking, wealth management and fiduciary services to individuals, families and businesses in the Chicago metropolitan area and on a regional or national basis for commercial finance, equipment finance, commercial real estate finance and treasury management business customers. BankFinancial Corporation's common stock trades on the Nasdaq Global Select Market under the symbol “BFIN.” Additional information may be found at the company's website, www.bankfinancial.com

This release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. A variety of factors could cause BankFinancial’s actual results to differ from those expected at the time of this release. For a discussion of some of the factors that may cause actual results to differ from expectations, please refer to BankFinancial’s most recent Annual Report on Form 10-K as filed with the SEC, as supplemented by subsequent filings with the SEC. Investors are urged to review all information contained in these reports, including the risk factors discussed therein. Copies of these filings are available at no cost on the SEC's web site at www.sec.gov or on BankFinancial’s web site at www.bankfinancial.com. Forward looking statements speak only as of the date they are made, and we do not undertake to update them to reflect changes.

For Further Information Contact:

Shareholder, Analyst and Investor Inquiries:

Media Inquiries:

Elizabeth A. Doolan

Senior Vice President – Finance

BankFinancial Corporation

Telephone: 630-425-5568

Gregg T. Adams

President – Marketing & Sales

BankFinancial, NA

Telephone: 630-425-5877

ex_274202.htm

Exhibit 99.2

BANKFINANCIAL CORPORATION

FOURTH QUARTER 2021

QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT

FOR THE LATEST FIVE QUARTERS

Note: Certain reclassifications have been made in the prior period’s financial statements and reflected in the Selected Quarterly Financial and Statistical Data tables to conform to the current period’s presentation.

The information and statistical data contained herein have been prepared by BankFinancial Corporation and have been derived or calculated from selected quarterly and period–end historical financial statements prepared in accordance with accounting principles generally accepted in the United States. BankFinancial Corporation is under no obligation to update, keep current, or continue to provide the information contained herein. This information is provided solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or establish any business relationships with BankFinancial Corporation or its subsidiary.

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2021												2020
	IVQ			IIIQ			IIQ			IQ			IVQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾		0.57	%		0.40	%		0.47	%		0.37	%		0.62	%
Return on equity (ratio of net income to average equity) ⁽¹⁾		6.00			4.05			4.52			3.40			5.63
Net interest rate spread ⁽¹⁾		2.75			2.68			2.67			2.73			2.92
Net interest margin ⁽¹⁾		2.81			2.75			2.75			2.81			3.03
Efficiency ratio ⁽²⁾		79.50			81.96			83.94			86.05			74.40
Noninterest expense to average total assets ⁽¹⁾		2.47			2.45			2.50			2.56			2.46
Average interest–earning assets to average interest–bearing liabilities		138.57			138.97			140.97			141.49			142.75
Number of full service offices		19			19			19			19			19
Employees (full time equivalents)		221			224			218			220			210

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	9,095		$	11,432		$	12,185		$	9,567		$	14,115
Interest-bearing deposits in other financial institutions		493,067			517,183			523,851			489,016			489,381
Securities, at fair value		85,694			14,693			18,883			20,751			23,829
Loans receivable, net		1,044,207			1,047,056			1,032,159			1,028,840			1,002,578
Foreclosed assets, net		725			1,049			1,702			4,630			157
Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost		7,490			7,490			7,490			7,490			7,490
Premises and equipment, net		25,043			24,772			24,765			24,726			24,675
Bank-owned life insurance		19,129			19,097			19,066			19,036			19,015
Deferred taxes		2,762			2,348			2,363			2,473			2,741
Other assets		13,470			15,022			14,158			13,856			12,861
Total assets	$	1,700,682		$	1,660,142		$	1,656,622		$	1,620,385		$	1,596,842

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,488,431		$	1,454,389		$	1,438,574		$	1,422,037		$	1,393,544
Borrowings		5,000			5,000			5,000			4,000			4,000
Subordinated Notes, net of unamortized issuance costs		19,590			19,578			19,568			—			—
Other liabilities		30,195			23,002			27,044			22,915			26,368
Total liabilities		1,543,216			1,501,969			1,490,186			1,448,952			1,423,912
Stockholders’ equity		157,466			158,173			166,436			171,433			172,930
Total liabilities and stockholders’ equity	$	1,700,682		$	1,660,142		$	1,656,622		$	1,620,385		$	1,596,842

⁽¹⁾	Annualized

⁽²⁾	The efficiency ratio represents noninterest expense, divided by the sum of net interest income and noninterest income.

Page 1

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2021												2020			For the years ended December 31,
	IVQ			IIIQ			IIQ			IQ			IVQ			2021			2020
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	12,073		$	11,748		$	11,497		$	11,248		$	12,543		$	46,566		$	52,875
Total interest expense		686			718			722			668			947			2,794			6,988
Net interest income		11,387			11,030			10,775			10,580			11,596			43,772			45,887
Provision for (recovery of) loan losses		(221	)		(6	)		(678	)		(335	)		(271	)		(1,240	)		55
Net interest income after provision for (recovery of) loan losses		11,608			11,036			11,453			10,915			11,867			45,012			45,832
Noninterest income		1,631			1,374			1,426			1,258			1,541			5,689			5,366
Noninterest expense		10,349			10,166			10,241			10,187			9,774			40,943			38,438
Income before income tax		2,890			2,244			2,638			1,986			3,634			9,758			12,760
Income tax expense ⁽¹⁾		519			600			712			517			1,189			2,348			3,597
Net income	$	2,371		$	1,644		$	1,926		$	1,469		$	2,445		$	7,410		$	9,163
Basic and diluted earnings per common share	$	0.18		$	0.12		$	0.13		$	0.10		$	0.17		$	0.53		$	0.61

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	832		$	814		$	800		$	738		$	740		$	3,184		$	3,196
Loan servicing fees		395			140			141			55			363			731			552
Mortgage brokerage and banking fees		2			16			5			12			14			35			98
Trust insurance commissions and annuities income		256			263			283			334			233			1,136			961
Earnings on bank-owned life insurance		32			31			30			21			19			114			70
Other		114			110			167			98			172			489			489
Total noninterest income	$	1,631		$	1,374		$	1,426		$	1,258		$	1,541		$	5,689		$	5,366

Noninterest Expense
Compensation and benefits	$	5,827		$	5,782		$	5,558		$	5,471		$	5,239		$	22,638		$	21,323
Office occupancy and equipment		1,711			1,824			1,892			2,097			1,961			7,524			7,271
Advertising and public relations		195			157			187			203			166			742			591
Information technology		871			779			723			710			768			3,083			3,360
Professional fees		312			311			343			370			412			1,336			1,356
Supplies, telephone, and postage		391			382			442			400			357			1,615			1,232
Nonperforming asset management		(3	)		6			8			41			(8	)		52			146
Operations of foreclosed assets, net		(2	)		81			232			53			4			364			17
FDIC insurance premiums		133			125			114			106			107			478			348
Other		914			719			742			736			768			3,111			2,794
Total noninterest expense	$	10,349		$	10,166		$	10,241		$	10,187		$	9,774		$	40,943		$	38,438

⁽¹⁾

Income tax expense for the quarter and year ended December 31, 2021 includes a $200,000 valuation reserve recovery related to the Company's Illinois NOL carryforward. Income tax expense for the quarter and year ended December 31, 2020 includes a $200,000 valuation reserve related to the Company's Illinois NOL carryforward.

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2021												2020			For the years ended December 31,
	IVQ			IIIQ			IIQ			IQ			IVQ			2021			2020
LOANS
One–to–four family residential real estate	$	30,133		$	31,829		$	34,762		$	38,236		$	41,691
Multi–family mortgage		426,136			435,634			434,635			440,824			452,241
Nonresidential real estate		103,172			100,469			100,008			112,154			108,658
Construction and land		—			499			499			499			499
Commercial loans and leases		489,512			483,705			467,461			442,706			405,057
Consumer		1,685			1,760			1,796			1,756			1,812
		1,050,638			1,053,896			1,039,161			1,036,175			1,009,958
Net deferred loan origination fees and costs		284			55			(145	)		60			371
Allowance for loan losses		(6,715	)		(6,895	)		(6,857	)		(7,395	)		(7,751	)
Loans, net	$	1,044,207		$	1,047,056		$	1,032,159		$	1,028,840		$	1,002,578

LOAN ORIGINATIONS ⁽¹⁾
One–to–four family residential real estate	$	494		$	332		$	349		$	403		$	290		$	1,578		$	2,173
Multi–family mortgage		38,265			33,296			25,486			20,680			16,024			117,727			67,805
Nonresidential real estate		6,522			2,988			581			5,046			61			15,137			5,905
Construction and land		—			—			—			—			499			—			499
Commercial loans		195,228			125,404			83,548			77,072			72,441			481,252			374,058
Equipment finance		84,072			51,890			57,077			67,913			75,491			260,952			198,894
Consumer		572			584			652			605			640			2,413			2,602
	$	325,153		$	214,494		$	167,693		$	171,719		$	165,446		$	879,059		$	651,936
Weighted average interest rate		4.07	%		4.33	%		4.20	%		3.87	%		4.16	%		4.12	%		4.26	%

LOAN PAYMENTS and PAYOFFS ⁽²⁾
One–to–four family residential real estate	$	2,266		$	3,364		$	3,870		$	3,897		$	3,396		$	13,397		$	16,204
Multi–family mortgage		47,882			32,362			31,554			32,737			86,003			144,535			178,660
Nonresidential real estate		3,760			2,613			12,643			1,627			15,881			20,643			32,363
Construction and land		499			—			—			—			—			499			—
Commercial loans		202,524			111,666			83,991			70,531			82,006			468,712			440,718
Equipment finance		71,088			49,241			31,856			31,547			40,746			183,732			146,558
Consumer		656			610			622			634			614			2,522			2,938
	$	328,675		$	199,856		$	164,536		$	140,973		$	228,646		$	834,040		$	817,441
Weighted average interest rate		4.26	%		4.38	%		4.44	%		4.27	%		4.57	%		4.33	%		4.61	%

(1)	Loan originations include purchased loans, draws on revolving lines of credit and exclude loan renewals.
(2)	Loan payments and payoffs exclude loan renewals.

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2021												2020
	IVQ			IIIQ			IIQ			IQ			IVQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate	$	367		$	341		$	588		$	384		$	925
Nonresidential real estate		297			296			296			296			296
Equipment finance		76			9			—			—			—
Nonaccrual loans		740			646			884			680			1,221

Loans past due over 90 days, still accruing - commercial		10			—			—			—			—

Foreclosed assets, net
Other real estate owned - One–to–four family residential real estate		—			—			38			285			157
Other foreclosed assets		725			1,049			1,664			4,345			—
Foreclosed assets, net		725			1,049			1,702			4,630			157

Nonperforming assets	$	1,475		$	1,695		$	2,586		$	5,310		$	1,378

Asset Quality Ratios
Nonperforming assets to total assets		0.09	%		0.10	%		0.16	%		0.33	%		0.09	%
Nonperforming loans to total loans ⁽¹⁾		0.07			0.06			0.09			0.07			0.12
Nonperforming commercial-related loans to total commercial-related loans ⁽²⁾		0.04			0.03			0.03			0.03			0.03
Nonperforming residential and consumer loans to total residential and consumer loans		1.15			1.02			1.61			0.96			2.13
Allowance for loan losses to nonperforming loans		895.33			1,067.34			775.68			1,087.50			634.81

Concentrations of Credit
Commercial real estate for FFIEC concentration limits	$	508,298		$	514,777		$	513,165		$	528,906		$	540,837
% FFIEC total capital		294.98	%		298.54	%		299.52	%		312.12	%		321.95	%

Multi–family mortgage loans - 50% risk based capital qualified (included above)	$	67,548		$	73,776		$	130,984		$	207,531		$	238,124
% FFIEC total capital		39.20	%		42.79	%		76.45	%		122.47	%		141.75	%

⁽¹⁾	Nonperforming loans include nonaccrual loans and loans past due 90 days and still accruing.

⁽²⁾	Commercial-related loans include multi-family mortgage, nonresidential real estate, construction and land, and commercial loans and leases.

Page 4

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2021												2020
	IVQ			IIIQ			IIQ			IQ			IVQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate	$	476		$	509		$	390		$	628		$	486
Nonresidential real estate		—			—			—			82			84
Commercial loans and leases		—			1,191			—			11			5,891
Consumer		6			7			4			4			5
	$	482		$	1,707		$	394		$	725		$	6,466

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	6,895		$	6,857		$	7,395		$	7,751		$	8,011
Charge–offs:
One–to–four family residential real estate		(3	)		—			—			—			(2	)
Nonresidential real estate		(7	)		—			—			—			—
Commercial loans and leases		(7	)		—			—			(86	)		—
Consumer		(12	)		(2	)		(6	)		(9	)		(18	)
		(29	)		(2	)		(6	)		(95	)		(20	)
Recoveries:
One–to–four family residential real estate		64			38			49			60			19
Multi–family mortgage		5			7			10			11			11
Commercial loans and leases		1			1			87			1			1
Consumer		—			—			—			2			—
		70			46			146			74			31
Net recoveries (charge–offs)		41			44			140			(21	)		11
Recovery of loan losses		(221	)		(6	)		(678	)		(335	)		(271	)
Ending balance	$	6,715		$	6,895		$	6,857		$	7,395		$	7,751

Allowance for loan losses to total loans		0.64	%		0.65	%		0.66	%		0.71	%		0.77	%
Net recoveries (charge–offs) ratio ⁽¹⁾		0.02			0.02			0.05			(0.01	)		—

⁽¹⁾	Annualized

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2021												2020
	IVQ			IIIQ			IIQ			IQ			IVQ
DEPOSITS
Noninterest–bearing demand	$	342,176		$	328,182		$	325,294		$	334,463		$	326,188
Interest–bearing NOW accounts		404,335			392,273			368,902			341,517			336,994
Money market accounts		333,369			319,857			322,753			318,449			297,801
Savings deposits		201,633			196,810			196,701			191,018			179,561
Certificates of deposit - retail		203,468			213,320			220,482			230,407			245,823
Certificates of deposit - wholesale		3,450			3,947			4,442			6,183			7,177
	$	1,488,431		$	1,454,389		$	1,438,574		$	1,422,037		$	1,393,544

SELECTED AVERAGE BALANCES
Total average assets	$	1,673,813		$	1,657,862		$	1,641,003		$	1,592,419		$	1,588,887
Total average interest–earning assets		1,608,652			1,592,482			1,573,429			1,528,472			1,524,087
Average loans		1,044,246			1,045,586			1,041,696			1,010,682			1,047,244
Average securities		32,542			16,915			20,735			21,207			36,180
Average stock in FHLB & FRB		7,490			7,490			7,490			7,490			7,490
Average other interest–earning assets		524,374			522,491			503,508			489,093			433,173
Total average interest–bearing liabilities		1,160,863			1,145,887			1,116,105			1,080,271			1,067,628
Average interest–bearing deposits		1,136,279			1,121,314			1,094,589			1,076,271			1,063,628
Average borrowings and Subordinated Notes		24,584			24,573			21,516			4,000			4,000
Average stockholders’ equity		157,961			162,361			170,509			172,841			173,649

SELECTED YIELDS AND COST OF FUNDS ⁽¹⁾
Total average interest–earning assets		2.98	%		2.93	%		2.93	%		2.98	%		3.27	%
Average loans		4.44			4.32			4.31			4.39			4.62
Average securities		0.98			1.08			1.01			1.03			1.06
Average other interest–earning assets		0.17			0.17			0.13			0.15			0.18
Total average interest–bearing liabilities		0.23			0.25			0.26			0.25			0.35
Average interest–bearing deposits		0.17			0.18			0.20			0.25			0.35
Average cost of total deposits		0.13			0.14			0.16			0.19			0.27
Average cost of retail and commercial deposits		0.16			0.18			0.19			0.24			0.33
Average cost of wholesale deposits, borrowings and Subordinated Notes		3.10			3.08			3.02			1.54			1.85
Average cost of funds		0.18			0.19			0.20			0.19			0.27
Net interest rate spread		2.75			2.68			2.67			2.73			2.92
Net interest margin		2.81			2.75			2.75			2.81			3.03

⁽¹⁾	Annualized

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2021												2020
	IVQ			IIIQ			IIQ			IQ			IVQ
CAPITAL RATIOS
BankFinancial Corporation ⁽¹⁾
Equity to total assets (end of period)		9.26	%		9.53	%		10.05	%		10.58	%		10.83	%
Tangible equity to tangible total assets (end of period)		9.26			9.53			10.05			10.58			10.83
Risk–based total capital ratio		19.47			19.22			21.16			20.10			20.07
Common Tier 1 (CET1)		16.66			16.44			18.19			19.26			19.20
Risk–based tier 1 capital ratio		16.66			16.44			18.19			19.26			19.20
Tier 1 leverage ratio		9.32			9.45			10.05			10.67			10.79
Tier 1 capital	$	155,818		$	156,632		$	164,862		$	169,768		$	171,240
BankFinancial, NA ⁽²⁾
Risk–based total capital ratio		18.43	%		18.11	%		18.92	%		19.23	%		18.84	%
Common Tier 1 (CET1)		17.71			17.39			18.17			18.39			17.97
Risk–based tier 1 capital ratio		17.71			17.39			18.17			18.39			17.97
Tier 1 leverage ratio		9.91			10.00			10.03			10.19			10.10
Tier 1 capital	$	165,599		$	165,537		$	164,471		$	162,059		$	160,236

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	10.67		$	11.48		$	11.44		$	10.32		$	8.78
High		11.81			12.79			11.96			11.23			9.10
Low		10.33			10.62			10.04			8.48			7.14
Common shares outstanding		13,228,485			13,374,133			14,118,720			14,623,659			14,769,765
Book value per share	$	11.90		$	11.83		$	11.79		$	11.72		$	11.71
Tangible book value per share	$	11.90		$	11.83		$	11.79		$	11.72		$	11.71
Cash dividends declared on common stock	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Dividend payout ratio		55.88	%		83.58	%		75.10	%		100.29	%		60.43	%
Stock repurchases	$	1,673		$	8,503		$	5,457		$	1,488		$	416
Stock repurchases – shares		145,648			744,587			504,939			146,106			54,863

EARNINGS PER SHARE COMPUTATIONS
Net income	$	2,371		$	1,644		$	1,926		$	1,469		$	2,445
Weighted average basic and dilutive common shares outstanding		13,264,374			13,722,333			14,433,748			14,723,769			14,783,042
Basic and diluted earnings per common share	$	0.18		$	0.12		$	0.13		$	0.10		$	0.17

⁽¹⁾	As a small bank holding company, the Company is exempt from the Federal Reserve Board's risk-based capital and leverage rules. BankFinancial Corporation capital data is included for informational purposes only.

⁽²⁾

As a qualifying community bank pursuant to Section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, the Bank elected to adopt the Community Bank Leverage Ratio requirement in the second quarter of 2020. Pursuant to the Coronavirus Aid, Relief, and Economic Security Act of 2021, the Bank's required minimum Community Bank Leverage Ratio is 8.50%. The Community Bank Leverage Ratio is equal to the Bank's Tier 1 Leverage Ratio. Other BankFinancial, NA capital data is included for informational purposes only.

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