bfin20220801_8k.htm
false 0001303942 0001303942 2023-01-31 2023-01-31
 
 
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 27, 2023
 
 
 
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: (800894-6900
 
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 27, 2023, BankFinancial Corporation (Nasdaq – BFIN) issued a press release announcing the results for the fourth quarter and year ended December 31, 2022 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, 2022 in a conference call and webcast for stockholders and analysts on Monday, January 30, 2023 at 9:30 a.m. Chicago, Illinois Time.  All participants will need to register for the conference call using the conferencing link below.  We will also publish the conferencing link on our website.  Participant registration URL:  https://register.vevent.com/register/BI3b0e105d394f4b3aa25be171af82e2ae
 
This link will take participants to the online registration form.  On the day of the call participants will have their choice of options: dial-in to the call with the number and unique passcode provided OR select the dial-out “Call Me” option to connect their phone instantly.  Participants can join via desktop, tablet or phone.
 
 
 
Item 9.01    Financial Statements and Exhibits.
 
 
(a)
Not Applicable.
 
(b)
Not Applicable.
 
(c)
Not Applicable.
 
(d)
Exhibits.
 
Exhibit No.
Description
 
Press Release dated January 27, 2023
 
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 27, 2023
 
By:
/s/ F. Morgan Gasior
 
 
 
 
 
F. Morgan Gasior
 
 
 
 
 
Chairman of the Board, Chief Executive Officer and President
 
 
ex_404452.htm

 

Exhibit 99.1

 

https://cdn.kscope.io/6335deabd192eceb92a5127b274a71fd-bfinlogo.jpg
 

FOR IMMEDIATE RELEASE

 

BankFinancial Corporation Reports Financial Results for 2022 and

Will Host Conference Call and Webcast on Monday, January 30, 2023

 

Burr Ridge, Illinois - (January 27, 2023)  BankFinancial Corporation (Nasdaq – BFIN) (the “Company”) announced today that the Company recorded net income of $10.5 million and basic and diluted earnings per common share of $0.80 for the year ended December 31, 2022.   The Company recorded net income of $3.4 million and basic and diluted earnings per common share of $0.27 for the fourth quarter of 2022.

 

For the year ended 2022, total loans increased by $182.5 million (17.5%) to $1.227 billion.  Total commercial loans and leases increased by $63.0 million (12.9%) to $552.5 million, reflecting our increasing emphasis on commercial and industrial lending.  Total multi-family mortgages and nonresidential real estate loans increased by $126.6 million (23.9%) to $656.0 million due to increased loan originations and reduced portfolio prepayment rates.  Total other loans decreased by $7.1 million (22.4%) due to our cessation of residential mortgage lending and continued prepayments of existing residential mortgage loans.

 

The Company’s asset quality remained stable in 2022.  The ratio of nonperforming loans to total loans was 0.13% and the ratio of nonperforming assets to total assets was 0.13% at December 31, 2022. The provision for loan losses increased by $3.1 million in 2022 primarily due to loan portfolio growth and a modest decline of macroeconomic factors during the fourth quarter of 2022. Our allowance for loan losses increased to 0.66% of total loans as of December 31, 2022, compared to 0.64% at December 31, 2021. 

 

Total deposits decreased by $113.5 million (7.6%) primarily due to the reduced liquidity of commercial depositors and declines in retail money market deposit account balances accumulated during the COVID-19 pandemic.  Core deposits were 86.4% of total deposits, with noninterest-bearing demand deposits representing 20.4% of total deposits. 

 

The Company’s capital position remained strong, with a Tier 1 leverage ratio of 9.73% at December 31, 2022. Throughout 2022, the Company maintained its quarterly dividend rate at $0.10 per common share. The Company repurchased 485,888 common shares during the year ended December 31, 2022, which represented 3.7% of the common shares that were outstanding on December 31, 2021. The Company’s book value per share remained at $11.90 per share at December 31, 2022.

 

For the year ended December 31, 2022, the Company’s net interest income before provision for loan losses increased by $7.0 million (16.1%) to $50.8 million due to growth in the loan and investment securities portfolios, and higher yields on loan originations and investment securities.  Non-interest income increased by $287,000 (5.0%) to $6.0 million due to increases in income from deposit services, trust/investment services and bank-owned life insurance death benefit proceeds.  Noninterest expense remained stable at $41.1 million, compared to $40.9 million in 2021.  

 

For the fourth quarter of 2022, net interest income increased by $66,000 to $14.0 million due to increased yields on loans and investments, net of increases in deposit interest expense. In addition to the loan portfolio growth in the fourth quarter of 2022, the Company increased its short-duration U.S Government Agency investment securities portfolio by $10.0 million at significantly higher yields compared to the third quarter of 2022.  The provision for loan losses increased by $393,000 due to loan portfolio growth and a modest decline in macroeconomic factors during the quarter.   Noninterest income increased by $119,000 to $1.4 million due to seasonally-higher loan and deposit services fee income. Noninterest expense decreased by $562,000 to $10.0 million, due to a reduction in other expenses compared to the third quarter of 2022. 

 

F. Morgan Gasior, the Chairman and CEO of the Company, said “The Company ended 2022 in a strong financial condition, with excellent asset quality and improved operating leverage.  Our financial results for 2022 reflect in part the continuing impact of our commercial credit originations capabilities, asset-liability management discipline and careful management of operating expenses. We expect our Commercial Finance, Equipment Finance and Treasury Services originations capabilities will contribute further improvements to earnings and to loan portfolio diversity in 2023.  We remain committed to delivering strong financial results 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 2022 results in a conference call and webcast for stockholders and analysts on Monday, January 30, 2023 at 9:30 a.m. Chicago, Illinois Time.  All participants will need to register for the conference call using the conferencing link below.  We will also publish the conferencing link on our website.  Participant registration URL:  https://register.vevent.com/register/BI3b0e105d394f4b3aa25be171af82e2ae

 

This link will take participants to the online registration form.  On the day of the call participants will have their choice of options: dial-in to the call with the number and unique passcode provided OR select the dial-out “Call Me” option to connect their phone instantly.  Participants can join via desktop, tablet or phone.

 

For those unable to participate in the conference call, the webcast will be archived through Monday, February 20, 2023 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_404453.htm

Exhibit 99.2

 

 

 

BANKFINANCIAL CORPORATION

 

FOURTH QUARTER 2022

 

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)

 

    2022     2021  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

PERFORMANCE MEASUREMENTS

                                       

Return on assets (ratio of net income to average total assets) (1)

    0.86 %     0.79 %     0.62 %     0.30 %     0.57 %

Return on equity (ratio of net income to average equity) (1)

    9.01       8.31       6.64       3.24       6.00  

Net interest rate spread (1)

    3.39       3.42       3.00       2.66       2.75  

Net interest margin (1)

    3.59       3.52       3.07       2.73       2.81  

Efficiency ratio (2)

    65.12       69.70       73.01       84.20       79.50  

Noninterest expense to average total assets (1)

    2.50       2.60       2.47       2.47       2.47  

Average interest–earning assets to average interest–bearing liabilities

    137.62       137.90       138.10       139.03       138.57  

Number of full service offices

    20       20       19       19       19  

Employees (full time equivalents)

    203       199       200       206       221  
                                         

SUMMARY STATEMENT OF FINANCIAL CONDITION

                                       

ASSETS

                                       

Cash and due from other financial institutions

  $ 12,046     $ 11,753     $ 10,655     $ 9,722     $ 9,095  

Interest-bearing deposits in other financial institutions

    54,725       204,378       259,816       391,280       493,067  

Securities, at fair value

    210,338       199,339       158,951       132,634       85,694  

Loans receivable, net

    1,226,743       1,141,799       1,142,743       1,055,069       1,044,207  

Foreclosed assets, net

    476       524       842       968       725  

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

    24,956       24,949       25,103       24,939       25,043  

Bank-owned life insurance

    18,815       18,879       18,893       19,157       19,129  

Deferred taxes

    5,175       5,156       4,261       3,750       2,762  

Other assets

    14,373       14,957       16,132       15,143       13,470  

Total assets

  $ 1,575,137     $ 1,629,224     $ 1,644,886     $ 1,660,152     $ 1,700,682  
                                         

LIABILITIES AND STOCKHOLDERS’ EQUITY

                                       

Deposits

  $ 1,374,934     $ 1,425,258     $ 1,444,750     $ 1,461,605     $ 1,488,431  

Borrowings

                      5,000       5,000  

Subordinated Notes, net of unamortized issuance costs

    19,634       19,623       19,612       19,601       19,590  

Other liabilities

    28,898       33,273       26,394       20,051       30,195  

Total liabilities

    1,423,466       1,478,154       1,490,756       1,506,257       1,543,216  

Stockholders’ equity

    151,671       151,070       154,130       153,895       157,466  

Total liabilities and stockholders’ equity

  $ 1,575,137     $ 1,629,224     $ 1,644,886     $ 1,660,152     $ 1,700,682  

 

(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)

 

   

2022

   

2021

   

For the years ended December 31,

 
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

   

2022

   

2021

 

SUMMARY STATEMENT OF OPERATIONS

                                                       

Total interest income

  $ 16,064     $ 14,930     $ 12,884     $ 11,418     $ 12,073     $ 55,296     $ 46,566  

Total interest expense

    2,076       1,008       754       643       686       4,481       2,794  

Net interest income

    13,988       13,922       12,130       10,775       11,387       50,815       43,772  

Provision for (recovery of) loan losses

    743       350       459       276       (221 )     1,828       (1,240 )

Net interest income after provision for (recovery of) loan losses

    13,245       13,572       11,671       10,499       11,608       48,987       45,012  

Noninterest income

    1,406       1,287       1,839       1,444       1,631       5,976       5,689  

Noninterest expense

    10,039       10,601       10,199       10,289       10,349       41,128       40,943  

Income before income tax

    4,612       4,258       3,311       1,654       2,890       13,835       9,758  

Income tax expense (1)

    1,174       1,037       744       386       519       3,341       2,348  

Net income

  $ 3,438     $ 3,221     $ 2,567     $ 1,268     $ 2,371     $ 10,494     $ 7,410  

Basic and diluted earnings per common share

  $ 0.27     $ 0.25     $ 0.19     $ 0.10     $ 0.18     $ 0.80     $ 0.53  
                                                         

NONINTEREST INCOME AND EXPENSE

                                                       

Noninterest Income

                                                       

Deposit service charges and fees

  $ 835     $ 829     $ 826     $ 781     $ 832     $ 3,271     $ 3,184  

Loan servicing fees

    240       59       190       101       395       590       731  

Mortgage brokerage and banking fees

    9       12       9       8       2       38       35  

Trust insurance commissions and annuities income

    266       287       262       338       256       1,153       1,136  

(Loss) earnings on bank-owned life insurance

    (64 )     (14 )     11       28       32       (39 )     114  

Bank-owned life insurance death benefit

                446                   446        

Other

    120       114       95       188       114       517       489  

Total noninterest income

  $ 1,406     $ 1,287     $ 1,839     $ 1,444     $ 1,631     $ 5,976     $ 5,689  
                                                         

Noninterest Expense

                                                       

Compensation and benefits

  $ 5,366     $ 5,241     $ 5,489     $ 5,480     $ 5,827     $ 21,576     $ 22,638  

Office occupancy and equipment

    1,944       1,970       1,933       2,134       1,711       7,981       7,524  

Advertising and public relations

    202       138       208       142       195       690       742  

Information technology

    926       894       895       851       871       3,566       3,083  

Professional fees

    262       245       412       373       312       1,292       1,336  

Supplies, telephone, and postage

    342       342       362       347       391       1,393       1,615  

FDIC insurance premiums

    111       134       106       116       133       467       478  

Other

    886       1,637       794       846       909       4,163       3,527  

Total noninterest expense

  $ 10,039     $ 10,601     $ 10,199     $ 10,289     $ 10,349     $ 41,128     $ 40,943  

 

(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.  

 

Page 2

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters

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

 

   

2022

   

2021

   

For the years ended December 31,

 
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

   

2022

   

2021

 

LOANS

                                                       

One–to–four family residential real estate

  $ 23,094     $ 24,484     $ 26,247     $ 28,221     $ 30,133                  

Multi–family mortgage

    536,295       481,838       485,742       435,522       426,136                  

Nonresidential real estate

    119,660       115,820       115,983       99,817       103,172                  

Construction and land

    160       160       84                              

Commercial loans and leases

    552,494       523,669       519,662       496,245       489,512                  

Consumer

    1,584       2,363       1,574       1,572       1,685                  
      1,233,287       1,148,334       1,149,292       1,061,377       1,050,638                  

Net deferred loan origination fees and costs

    1,585       851       653       478       284                  

Allowance for loan losses

    (8,129 )     (7,386 )     (7,202 )     (6,786 )     (6,715 )                

Loans, net

  $ 1,226,743     $ 1,141,799     $ 1,142,743     $ 1,055,069     $ 1,044,207                  
                                                         

LOAN ORIGINATIONS (1)

                                                       

One–to–four family residential real estate

  $ 215     $ 592     $ 268     $ 348     $ 494     $ 1,423     $ 1,578  

Multi–family mortgage

    67,888       44,614       75,595       35,661       38,265       223,758       117,727  

Nonresidential real estate

    7,694       8,947       21,254       5,837       6,522       43,732       15,137  

Construction and land

          76       84                   160        

Commercial loans

    179,421       168,438       183,464       184,290       195,228       715,613       481,252  

Equipment finance

    90,157       53,982       90,267       30,821       84,072       265,227       260,952  

Consumer

    544       544       563       496       572       2,147       2,413  
    $ 345,919     $ 277,193     $ 371,495     $ 257,453     $ 325,153     $ 1,252,060     $ 879,059  

Weighted average interest rate

    6.88 %     6.26 %     4.87 %     4.56 %     4.07 %     5.67 %     4.12 %
                                                         

LOAN PAYMENTS and PAYOFFS (2)

                                                       

One–to–four family residential real estate

  $ 1,525     $ 2,296     $ 2,233     $ 2,324     $ 2,266     $ 8,378     $ 13,397  

Multi–family mortgage

    13,465       48,158       26,156       25,598       47,882       113,377       144,535  

Nonresidential real estate

    3,708       9,460       5,018       8,823       3,760       27,009       20,643  

Construction and land

                            499             499  

Commercial loans

    177,205       160,502       197,912       170,543       202,524       706,162       468,712  

Equipment finance

    64,144       56,779       51,671       38,701       71,088       211,295       183,732  

Consumer

    541       525       557       587       656       2,210       2,522  
    $ 260,588     $ 277,720     $ 283,547     $ 246,576     $ 328,675     $ 1,068,431     $ 834,040  

Weighted average interest rate

    6.97 %     5.88 %     4.94 %     4.42 %     4.26 %     5.56 %     4.33 %

 

(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)

 

   

2022

   

2021

 
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

CREDIT QUALITY:

                                       

Nonperforming Assets:

                                       

Nonaccrual loans:

                                       

One–to–four family residential real estate

  $ 92     $ 715     $ 323     $ 330     $ 367  

Nonresidential real estate

                            297  

Equipment finance

    1,306       525       610       101       76  

Consumer

    5                          

Nonaccrual loans

    1,403       1,240       933       431       740  
                                         

Loans past due over 90 days, still accruing

    233       415       753       1,531       10  
                                         

Foreclosed assets, net

                                       

Other real estate owned

    472       243       274       274        

Other foreclosed assets

    4       281       568       694       725  

Foreclosed assets, net

    476       524       842       968       725  
                                         

Nonperforming assets

  $ 2,112     $ 2,179     $ 2,528     $ 2,930     $ 1,475  
                                         

Asset Quality Ratios

                                       

Nonperforming assets to total assets

    0.13 %     0.13 %     0.15 %     0.18 %     0.09 %

Nonperforming loans to total loans (1)

    0.13       0.14       0.15       0.18       0.07  

Nonperforming commercial-related loans to total commercial-related loans (2)

    0.13       0.08       0.12       0.16       0.04  

Nonperforming residential and consumer loans to total residential and consumer loans

    0.39       2.66       1.16       1.11       1.15  

Allowance for loan losses to nonperforming loans

    496.88       446.28       427.16       345.87       895.33  
                                         

Concentrations of Credit

                                       

Commercial real estate for FFIEC concentration limits

  $ 634,482     $ 575,526     $ 579,455     $ 514,434     $ 508,298  

% FFIEC total capital

    365.95 %     329.27 %     331.26 %     295.56 %     294.98 %
                                         

Multi–family mortgage loans - 50% risk based capital qualified (included above)

  $ 101,052     $ 103,745     $ 121,717     $ 153,558     $ 67,548  

% FFIEC total capital

    58.28 %     59.35 %     69.58 %     88.22 %     39.20 %

 

(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)

 

    2022     2021  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

SUBSTANDARD PERFORMING LOANS

                                       

One–to–four family residential real estate

  $ 326     $ 163     $ 424     $ 433     $ 476  

Commercial loans and leases

    4,041       50       56       63        

Consumer

    4       4       5       3       6  
    $ 4,371     $ 217     $ 485     $ 499     $ 482  
                                         

ALLOWANCE FOR LOAN LOSSES

                                       

Beginning balance

  $ 7,386     $ 7,202     $ 6,786     $ 6,715     $ 6,895  

Charge–offs:

                                       

One-to-four family residential real estate

          (71 )     (1 )     (4 )     (3 )

Nonresidential real estate

                      (192 )     (7 )

Commercial loans and leases

    (1 )     (104 )     (51 )           (7 )

Consumer

    (12 )     (16 )     (15 )     (18 )     (12 )
      (13 )     (191 )     (67 )     (214 )     (29 )

Recoveries:

                                       

One–to–four family residential real estate

    4       2       3       2       64  

Multi–family mortgage

    5       6       4       5       5  

Nonresidential real estate

          2       2              

Commercial loans and leases

    4       15             1       1  

Consumer

                15       1        
      13       25       24       9       70  

Net recoveries (charge–offs)

          (166 )     (43 )     (205 )     41  

Provision for (recovery of) loan losses

    743       350       459       276       (221 )

Ending balance

  $ 8,129     $ 7,386     $ 7,202     $ 6,786     $ 6,715  
                                         

Allowance for loan losses to total loans

    0.66 %     0.64 %     0.63 %     0.64 %     0.64 %

Net recoveries (charge–offs) ratio (1)

          (0.06 )     (0.02 )     (0.08 )     0.02  

 

(1)

Annualized

 

Page 5

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters

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

 

    2022     2021  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

DEPOSITS

                                       

Noninterest–bearing demand

  $ 280,625     $ 307,116     $ 311,408     $ 339,504     $ 342,185  

Interest–bearing NOW accounts

    400,416       409,135       400,405       384,665       404,326  

Money market accounts

    302,863       314,436       334,237       330,094       333,369  

Savings deposits

    204,506       206,048       205,590       207,201       201,633  

Certificates of deposit - retail

    186,524       188,278       192,616       198,911       203,468  

Certificates of deposit - wholesale

          245       494       1,230       3,450  
    $ 1,374,934     $ 1,425,258     $ 1,444,750     $ 1,461,605     $ 1,488,431  
                                         

SELECTED AVERAGE BALANCES

                                       

Total average assets

  $ 1,605,375     $ 1,632,775     $ 1,648,736     $ 1,666,086     $ 1,673,813  

Total average interest–earning assets

    1,546,499       1,571,188       1,586,230       1,601,040       1,608,652  

Average loans

    1,158,474       1,147,154       1,096,005       1,050,668       1,044,246  

Average securities

    215,359       187,163       141,603       116,360       32,542  

Average stock in FHLB & FRB

    7,490       7,490       7,490       7,490       7,490  

Average other interest–earning assets

    165,176       229,381       341,132       426,522       524,374  

Total average interest–bearing liabilities

    1,123,780       1,139,368       1,148,577       1,151,564       1,160,863  

Average interest–bearing deposits

    1,104,152       1,119,751       1,126,883       1,126,969       1,136,279  

Average borrowings and Subordinated Notes

    19,628       19,617       21,694       24,595       24,584  

Average stockholders’ equity

    152,672       155,000       154,634       156,492       157,961  
                                         

SELECTED YIELDS AND COST OF FUNDS (1)

                                       

Total average interest–earning assets

    4.12 %     3.77 %     3.26 %     2.89 %     2.98 %

Average loans

    4.57       4.40       4.28       4.17       4.44  

Average securities

    2.04       1.74       1.22       1.04       0.98  

Average other interest–earning assets

    3.69       2.22       0.80       0.21       0.17  

Total average interest–bearing liabilities

    0.73       0.35       0.26       0.23       0.23  

Average interest–bearing deposits

    0.67       0.29       0.20       0.16       0.17  

Average cost of total deposits

    0.53       0.22       0.15       0.12       0.13  

Average cost of retail and commercial deposits

    0.67       0.29       0.20       0.15       0.16  

Average cost of wholesale deposits, borrowings and Subordinated Notes

    4.01       3.96       3.62       3.16       3.10  

Average cost of funds

    0.58       0.27       0.21       0.18       0.18  

Net interest rate spread

    3.39       3.42       3.00       2.66       2.75  

Net interest margin

    3.59       3.52       3.07       2.73       2.81  

 

(1)

Annualized

 

Page 6

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters

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

 

    2022     2021  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

CAPITAL RATIOS

                                       

BankFinancial Corporation (1)

                                       

Equity to total assets (end of period)

    9.63 %     9.27 %     9.37 %     9.27 %     9.26 %

Tangible equity to tangible total assets (end of period)

    9.63       9.27       9.37       9.27       9.26  

Risk–based total capital ratio

    17.00       17.97       18.49       19.82       19.47  

Common Tier 1 (CET1)

    14.43       15.32       15.78       16.94       16.66  

Risk–based tier 1 capital ratio

    14.43       15.32       15.78       16.94       16.66  

Tier 1 leverage ratio

    9.73       9.55       9.48       9.32       9.32  

Tier 1 capital

  $ 156,086     $ 155,725     $ 156,085     $ 155,164     $ 155,818  

BankFinancial, NA (2)

                                       

Risk–based total capital ratio

    16.04 %     17.19 %     17.68 %     19.01 %     18.43 %

Common Tier 1 (CET1)

    15.28       16.47       16.95       18.27       17.71  

Risk–based tier 1 capital ratio

    15.28       16.47       16.95       18.27       17.71  

Tier 1 leverage ratio

    10.31       10.26       10.18       10.05       9.91  

Tier 1 capital

  $ 165,252     $ 167,403     $ 167,723     $ 167,268     $ 165,599  
                                         

COMMON STOCK AND DIVIDENDS

                                       

Stock Prices:

                                       

Close

  $ 10.53     $ 9.46     $ 9.39     $ 10.36     $ 10.67  

High

    10.60       10.27       10.78       11.27       11.81  

Low

    9.06       9.18       9.30       10.30       10.33  

Common shares outstanding

    12,742,597       12,922,174       13,153,485       13,178,485       13,228,485  

Book value per share

  $ 11.90     $ 11.69     $ 11.72     $ 11.68     $ 11.90  

Tangible book value per share

  $ 11.90     $ 11.69     $ 11.72     $ 11.68     $ 11.90  

Cash dividends declared on common stock

  $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.10  

Dividend payout ratio

    37.45 %     40.53 %     51.24 %     104.33 %     55.88 %

Stock repurchases

  $ 1,760     $ 2,313     $ 254     $ 539     $ 1,673  

Stock repurchases – shares

    179,577       231,311       25,000       50,000       145,648  
                                         

EARNINGS PER SHARE COMPUTATIONS

                                       

Net income

  $ 3,438     $ 3,221     $ 2,567     $ 1,268     $ 2,371  

Weighted average basic and dilutive common shares outstanding

    12,861,529       13,060,266       13,165,023       13,204,041       13,264,374  

Basic and diluted earnings per common share

  $ 0.27     $ 0.25     $ 0.19     $ 0.10     $ 0.18  

 

(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. 

 

Page 7