bfin20230810_8k.htm
false 0001303942 0001303942 2024-01-31 2024-01-31
 
 
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 31, 2024
 
 
 
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 31, 2024, BankFinancial Corporation (Nasdaq – BFIN) issued a press release announcing the results for the fourth quarter and year ended December 31, 2023 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, 2023 in a conference call and webcast for stockholders and analysts on Friday, February 2, 2024 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/BI0b6c092b40134a41a155b5c2d186393a
 
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 31, 2024
 
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, 2024
 
By:
/s/ F. Morgan Gasior
 
 
 
 
 
F. Morgan Gasior
 
 
 
 
 
Chairman of the Board, Chief Executive Officer and President
 
 
ex_558712.htm

 

Exhibit 99.1

 

https://cdn.kscope.io/6eaf95d10e33cd65930da3df6b0b966d-bfinlogo.jpg
 

FOR IMMEDIATE RELEASE

 

BankFinancial Corporation Reports Financial Results for 2023 and

Will Host Conference Call and Webcast on Friday, February 2, 2024

 

Burr Ridge, Illinois - (January 31, 2024)  BankFinancial Corporation (Nasdaq – BFIN) (the “Company”) announced today that the Company recorded net income of $9.4 million and basic and diluted earnings per common share of $0.74 for the year ended December 31, 2023.   The Company recorded net income of $2.1 million and basic and diluted earnings per common share of $0.17 for the fourth quarter of 2023.

 

Total assets at December 31, 2023 were $1.487 billion, a decline of $88.1 million (5.6%) compared to December 31, 2022.  Cash and interest-bearing deposits were $178.5 million, an increase of $111.7 million (167.3%) compared to 2022.  Total net loans decreased by $176.0 million (14.3%) to $1.051 billion for the year ended 2023 due to business plan changes we implemented in 2023 focused on increasing liquidity, maintaining asset-liability flexibility and loan pricing discipline, and reducing credit risk to certain asset classes.  Total commercial loans and leases decreased by $159.7 million (28.9%) resulting from a $153.1 million (33.6%) decline in equipment finance portfolio balances and a $6.6 million (6.8%) decline in commercial finance loan balances.  Total multi-family residential and nonresidential real estate loans decreased by $11.6 million (1.8%). Our loan to deposit ratio was 83.3% as of December 31, 2023, compared to 89.2% as of December 31, 2022.

 

Total deposits decreased by $113.3 million (8.2%) in 2023 primarily due to a general decline in balances related to retail and commercial depositors’ use of funds and to a lesser extent, national and local competition for interest-bearing retail deposits by banks and credit unions. Core deposits represented 82.4% of total deposits, with noninterest-bearing demand deposits representing 20.7% of total deposits.  Commercial deposits were 21.2% of total deposits at December 31, 2023, consistent with 2022.

 

The Company’s capital position remained strong, with a Tier 1 leverage ratio of 10.54% as of December 31, 2023. Throughout 2023, the Company maintained its quarterly dividend rate at $0.10 per common share. The Company repurchased 266,716 common shares during 2023, which represented 2.1% of the common shares that were outstanding on December 31, 2022. The book value of the Company’s common shares increased from $11.90 per share at December 31, 2022 to $12.45 per share at December 31, 2023.

 

For the year ended December 31, 2023, interest income increased by $10.9 million (19.6%) due to our investment of scheduled loan and lease portfolio repayments into short-term liquidity investments and higher yields earned within the commercial loan portfolio.  Interest expense increased by $9.8 million (219.7%) due to higher rates paid on deposit accounts, as certain depositors managed their funds in a way that benefited from increases in short-term market interest rates.  Accordingly, the Company's net interest income before the provision for credit losses increased by $1.0 million (2.0%) in 2023.

 

Noninterest income decreased by $1.6 million primarily due to a $753,000 reduction in Bank-Owned Life Insurance revenues and death benefits and a $602,000 asset valuation reduction related to the closure of two branch office facilities. Trust Department income increased by $77,000 due to growth in assets under management during 2023.  Noninterest expense increased by $2.1 million primarily due to increases in compensation expenses, FDIC insurance expense related to higher uniform premium rates assessed on all insured depository institutions, and other expenses.

 

The ratio of nonperforming loans to total loans was 2.11% and the ratio of nonperforming assets to total assets was 1.69% at December 31, 2023 primarily due to two U.S. Government equipment finance transactions totaling 1.78% of total loans and 1.27% of total assets for which the government did not remit required payments and are now subject to a federal claims process.  The provision for credit losses - loans decreased by $1.4 million in 2023 primarily due to the decrease in loan portfolio balances during 2023 and the impact of the Current Expected Credit Loss accounting standard implemented in 2023.  Our allowance for credit losses increased to 0.79% of total loans at December 31, 2023, compared to 0.66% at December 31, 2022.

 

F. Morgan Gasior, the Chairman and CEO of the Company, said: “The Company ended 2023 in good financial and operational condition.  Our asset-liability management strategies enabled us to strengthen liquidity and improve interest income in a highly uncertain environment.  In turn, the improvement in interest income enabled us to improve net interest income despite a significant increase in deposit interest expense due to sharply rising market interest rates.  To ensure appropriate liquidity, reduce risk exposures and maintain asset-liability flexibility in a rising rate environment, we reduced commercial credit originations in our equipment finance and commercial real estate portfolios, which provided liquidity to fund the reduction in total deposits and increases in short-term investments. These actions resulted in strong liquidity and capital ratios as of December 31, 2023.  The reduction in loan balances and the unexpected developments in our government equipment finance portfolio reduced the earnings benefits from our asset-liability management actions. We expect our Commercial Finance, Commercial Equipment Finance and Treasury Services originations capabilities will contribute to earnings improvements and to loan portfolio diversity in 2024.  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 2023 results in a conference call and webcast for stockholders and analysts on Friday, February 2, 2024 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/BI0b6c092b40134a41a155b5c2d186393a

 

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 Friday, February 23, 2024 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_558713.htm

Exhibit 99.2

 

 

 

BANKFINANCIAL CORPORATION

 

FOURTH QUARTER 2023

 

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)

 

    2023     2022  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

PERFORMANCE MEASUREMENTS

                                       

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

    0.56 %     0.63 %     0.61 %     0.68 %     0.86 %

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

    5.37       6.16       6.02       6.96       9.01  

Net interest rate spread (1)

    3.01       3.16       3.23       3.41       3.39  

Net interest margin (1)

    3.46       3.56       3.56       3.66       3.59  

Efficiency ratio (2)

    77.39       76.02       79.11       74.51       65.12  

Noninterest expense to average total assets (1)

    2.92       2.86       2.94       2.65       2.50  

Average interest–earning assets to average interest–bearing liabilities

    136.25       136.78       136.86       135.85       137.62  

Number of full service offices

    18       18       18       18       20  

Employees (full time equivalents)

    205       200       198       202       203  
                                         

SUMMARY STATEMENT OF FINANCIAL CONDITION

                                       

ASSETS

                                       

Cash and due from other financial institutions

  $ 19,781     $ 19,691     $ 20,401     $ 19,963     $ 12,046  

Interest-bearing deposits in other financial institutions

    158,703       151,870       94,930       57,042       54,725  

Securities, at fair value

    182,716       158,425       169,647       170,239       210,338  

Loans receivable, net

    1,050,761       1,105,604       1,170,767       1,225,288       1,226,743  

Foreclosed assets, net

    2,777       902       950       1,393       476  

Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost

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

Premises held-for-sale

    523       540       540       1,246        

Premises and equipment, net

    22,950       22,914       22,957       22,955       24,956  

Bank-owned life insurance

    18,469       18,556       18,644       18,731       18,815  

Deferred taxes

    4,512       4,979       5,476       5,395       5,480  

Other assets

    18,702       14,483       14,894       14,368       14,373  

Total assets

  $ 1,487,384     $ 1,505,454     $ 1,526,696     $ 1,544,110     $ 1,575,442  
                                         

LIABILITIES AND STOCKHOLDERS’ EQUITY

                                       

Deposits

  $ 1,261,623     $ 1,275,828     $ 1,303,720     $ 1,315,214     $ 1,374,934  

Borrowings

    25,000       25,000       25,000       35,000        

Subordinated Notes, net of unamortized issuance costs

    19,678       19,667       19,656       19,645       19,634  

Other liabilities

    25,700       31,204       26,017       21,892       29,203  

Total liabilities

    1,332,001       1,351,699       1,374,393       1,391,751       1,423,771  

Stockholders’ equity

    155,383       153,755       152,303       152,359       151,671  

Total liabilities and stockholders’ equity

  $ 1,487,384     $ 1,505,454     $ 1,526,696     $ 1,544,110     $ 1,575,442  

 

 

(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)

 

   

2023

   

2022

   

For the years ended December 31,

 
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

   

2023

   

2022

 

SUMMARY STATEMENT OF OPERATIONS

                                                       

Total interest income

  $ 16,923     $ 16,894     $ 16,178     $ 16,160     $ 16,064     $ 66,155     $ 55,296  

Total interest expense

    4,491       3,940       3,235       2,660       2,076       14,326       4,481  

Net interest income

    12,432       12,954       12,943       13,500       13,988       51,829       50,815  

Provision for (recovery of) credit losses

    317       136       (188 )     48       743       313       1,828  

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

    12,115       12,818       13,131       13,452       13,245       51,516       48,987  

Noninterest income

    1,625       1,240       1,239       313       1,406       4,417       5,976  

Noninterest expense

    10,879       10,790       11,220       10,292       10,039       43,181       41,128  

Income before income tax

    2,861       3,268       3,150       3,473       4,612       12,752       13,835  

Income tax expense

    782       899       838       840       1,174       3,359       3,341  

Net income

  $ 2,079     $ 2,369     $ 2,312     $ 2,633     $ 3,438     $ 9,393     $ 10,494  

Basic and diluted earnings per common share

  $ 0.17     $ 0.19     $ 0.18     $ 0.21     $ 0.27     $ 0.74     $ 0.80  
                                                         

NONINTEREST INCOME AND EXPENSE

                                                       

Noninterest Income

                                                       

Deposit service charges and fees

  $ 836     $ 836     $ 830     $ 816     $ 835     $ 3,318     $ 3,271  

Loan servicing fees

    164       98       141       129       240       532       590  

Trust insurance commissions and annuities income

    347       290       276       367       266       1,280       1,153  

Losses on sales of securities

                      (454 )           (454 )      

Gain (loss) on sale of premises and equipment

                13       (4 )           9        

Valuation adjustment on bank premises held-for-sale

    (17 )           (32 )     (553 )           (602 )      

Loss on bank-owned life insurance

    (87 )     (88 )     (87 )     (84 )     (64 )     (346 )     (39 )

Bank-owned life insurance death benefit

                                        446  

Other

    382       104       98       96       129       680       555  

Total noninterest income

  $ 1,625     $ 1,240     $ 1,239     $ 313     $ 1,406     $ 4,417     $ 5,976  
                                                         

Noninterest Expense

                                                       

Compensation and benefits

  $ 5,679     $ 5,369     $ 5,629     $ 5,555     $ 5,366     $ 22,232     $ 21,576  

Office occupancy and equipment

    1,937       2,046       2,031       2,038       1,944       8,052       7,981  

Advertising and public relations

    139       171       262       190       202       762       690  

Information technology

    974       944       965       849       926       3,732       3,566  

Professional fees

    292       366       355       317       262       1,330       1,292  

Supplies, telephone, and postage

    289       311       295       359       342       1,254       1,393  

FDIC insurance premiums

    207       222       282       154       111       865       467  

Other

    1,362       1,361       1,401       830       886       4,954       4,163  

Total noninterest expense

  $ 10,879     $ 10,790     $ 11,220     $ 10,292     $ 10,039     $ 43,181     $ 41,128  

 

 

Page 2

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters

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

 

   

2023

   

2022

   

For the years ended December 31,

 
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

   

2023

   

2022

 

LOANS

                                                       

One–to–four family residential real estate

  $ 18,945     $ 19,233     $ 20,448     $ 21,475     $ 23,133                  

Multi–family residential real estate

    527,460       528,251       542,165       544,673       537,394                  

Nonresidential real estate

    118,016       117,641       120,505       123,360       119,705                  

Commercial loans and leases

    393,321       447,687       495,520       544,216       553,056                  

Consumer

    1,364       1,351       1,355       1,596       1,584                  
      1,059,106       1,114,163       1,179,993       1,235,320       1,234,872                  

Allowance for credit losses

    (8,345 )     (8,559 )     (9,226 )     (10,032 )     (8,129 )                

Loans, net

  $ 1,050,761     $ 1,105,604     $ 1,170,767     $ 1,225,288     $ 1,226,743                  
                                                         

LOAN ORIGINATIONS (1)

                                                       

One–to–four family residential real estate

  $ 758     $ 137     $ 128     $ 173     $ 215     $ 1,196     $ 1,423  

Multi–family residential real estate

    6,226       5,902       6,686       17,097       67,888       35,911       223,918  

Nonresidential real estate

    3,183       834       200       5,436       7,694       9,653       43,732  

Commercial loans

    145,930       172,081       157,704       181,227       179,421       656,942       715,613  

Equipment finance

    8,141       14,442       7,290       24,623       90,157       54,496       265,227  

Consumer

    617       514       539       565       544       2,235       2,147  
    $ 164,855     $ 193,910     $ 172,547     $ 229,121     $ 345,919     $ 760,433     $ 1,252,060  

Weighted average interest rate

    9.09 %     9.11 %     9.24 %     8.67 %     6.88 %     9.00 %     5.67 %
                                                         

LOAN PAYMENTS and PAYOFFS (2)

                                                       

One–to–four family residential real estate

  $ 1,049     $ 1,409     $ 1,139     $ 1,826     $ 1,525     $ 5,423     $ 8,378  

Multi–family residential real estate

    7,336       19,784       9,095       10,151       13,465       46,366       113,377  

Nonresidential real estate

    3,278       3,253       2,934       1,967       3,708       11,432       27,009  

Commercial loans

    148,964       176,493       169,402       168,461       177,205       663,320       706,162  

Equipment finance

    55,433       56,844       43,567       45,250       64,144       201,094       211,295  

Consumer

    565       529       675       615       541       2,384       2,210  
    $ 216,625     $ 258,312     $ 226,812     $ 228,270     $ 260,588     $ 930,019     $ 1,068,431  

Weighted average interest rate

    7.85 %     7.86 %     8.35 %     8.20 %     6.97 %     8.06 %     5.56 %

 

(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)

 

   

2023

   

2022

 
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

CREDIT QUALITY:

                                       

Nonperforming Assets:

                                       

Nonaccrual loans:

                                       

One–to–four family residential real estate

  $ 37     $ 40     $ 45     $ 55     $ 92  

Multi–family residential real estate

                148              

Equipment finance

    21,294       23,468       23,965       8,807       1,310  

Consumer

                            5  
      21,331       23,508       24,158       8,862       1,407  
                                         

Loans past due over 90 days, still accruing

    1,007       6,245                   238  
                                         

Foreclosed assets, net

                                       

Other real estate owned

    405       468       472       472       472  

Other foreclosed assets

    2,372       434       478       921       4  
      2,777       902       950       1,393       476  
                                         

Nonperforming assets

  $ 25,115     $ 30,655     $ 25,108     $ 10,255     $ 2,121  
                                         

Asset Quality Ratios

                                       

Nonperforming assets to total assets

    1.69 %     2.04 %     1.64 %     0.66 %     0.13 %

Nonperforming loans to total loans (1)

    2.11       2.67       2.05       0.72       0.13  

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

    2.15       2.72       2.08       0.73       0.13  

Nonperforming residential and consumer loans to total residential and consumer loans

    0.18       0.19       0.21       0.24       0.39  

Allowance for credit losses to nonperforming loans

    37.36       28.77       38.19       113.20       494.16  
                                         

Concentrations of Credit

                                       

Commercial real estate for FFIEC concentration limits

  $ 624,575     $ 624,469     $ 641,022     $ 645,768     $ 634,482  

% FFIEC total capital

    370.83 %     363.55 %     372.44 %     374.63 %     365.95 %
                                         

Multi–family residential real estate loans - 50% risk based capital qualified (included above)

  $ 315,179     $ 248,128     $ 175,902     $ 122,213     $ 101,052  

% FFIEC total capital

    187.13 %     144.45 %     102.20 %     70.90 %     58.28 %

 

(1)

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

(2)

Commercial-related loans include multi-family residential real estate, nonresidential real estate, 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)

 

    2023     2022  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

SUBSTANDARD PERFORMING LOANS

                                       

One–to–four family residential real estate

  $ 272     $ 282     $ 272     $ 280     $ 327  

Multi–family residential real estate

                      148        

Commercial loans and leases

    4,056       5,685       3,759       3,846       4,041  

Consumer

    3       3       5       5       4  
    $ 4,331     $ 5,970     $ 4,036     $ 4,279     $ 4,372  
                                         

ALLOWANCE FOR CREDIT LOSSES

                                       

Beginning balance

  $ 8,559     $ 9,226     $ 10,032     $ 8,129     $ 7,386  

Impact of adopting ASC 326

                      1,907        

Charge–offs:

                                       

One-to-four family residential real estate

    (1 )                        

Commercial loans and leases

    (570 )     (889 )     (638 )     (79 )     (1 )

Consumer

    (9 )     (14 )     (7 )     (22 )     (12 )
      (580 )     (903 )     (645 )     (101 )     (13 )

Recoveries:

                                       

One–to–four family residential real estate

    1       32       7       5       4  

Multi–family residential real estate

    5       4       6       5       5  

Commercial loans and leases

    50       20       6       1       4  

Consumer

                      1        
      56       56       19       12       13  

Net charge–offs

    (524 )     (847 )     (626 )     (89 )      

Provision for (recovery of) credit losses

    310       180       (180 )     85       743  

Ending balance

  $ 8,345     $ 8,559     $ 9,226     $ 10,032     $ 8,129  
                                         

Allowance for credit losses to total loans

    0.79 %     0.77 %     0.78 %     0.81 %     0.66 %

Net charge–offs ratio (1)

    (0.19 )     (0.30 )     (0.21 )     (0.03 )      

 

(1)

Annualized

 

Page 5

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters

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

 

    2023     2022  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

DEPOSITS

                                       

Noninterest–bearing demand

  $ 260,851     $ 258,318     $ 278,170     $ 287,493     $ 280,625  

Interest–bearing NOW accounts

    306,548       326,874       349,374       360,441       400,416  

Money market accounts

    297,074       291,154       271,194       273,256       302,863  

Savings deposits

    174,759       178,318       190,277       200,659       204,506  

Certificates of deposit - retail

    222,391       220,915       214,456       193,116       186,524  

Certificates of deposit - wholesale

          249       249       249        
    $ 1,261,623     $ 1,275,828     $ 1,303,720     $ 1,315,214     $ 1,374,934  
                                         

SELECTED AVERAGE BALANCES

                                       

Total average assets

  $ 1,492,759     $ 1,511,422     $ 1,526,246     $ 1,553,445     $ 1,605,375  

Total average interest–earning assets

    1,425,504       1,444,259       1,459,369       1,494,248       1,546,499  

Average loans

    1,088,172       1,141,788       1,206,175       1,225,636       1,158,474  

Average securities

    171,903       170,806       176,052       212,344       215,359  

Average stock in FHLB & FRB

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

Average other interest–earning assets

    157,939       124,175       69,652       48,778       165,176  

Total average interest–bearing liabilities

    1,046,249       1,055,874       1,066,332       1,099,950       1,123,780  

Average interest–bearing deposits

    1,001,576       1,011,212       1,021,023       1,066,321       1,104,152  

Average borrowings and Subordinated Notes

    44,673       44,662       45,309       33,629       19,628  

Average stockholders’ equity

    154,927       153,796       153,703       151,417       152,672  
                                         

SELECTED YIELDS AND COST OF FUNDS (1)

                                       

Total average interest–earning assets

    4.71 %     4.64 %     4.45 %     4.39 %     4.12 %

Average loans

    4.99       4.96       4.77       4.76       4.57  

Average securities

    2.18       1.88       1.92       2.13       2.04  

Average other interest–earning assets

    5.47       5.42       5.14       4.66       3.69  

Total average interest–bearing liabilities

    1.70       1.48       1.22       0.98       0.73  

Average interest–bearing deposits

    1.59       1.36       1.08       0.87       0.67  

Average cost of total deposits

    1.26       1.07       0.85       0.70       0.53  

Average cost of retail and commercial deposits

    1.59       1.36       1.08       0.87       0.67  

Average cost of wholesale deposits, borrowings and Subordinated Notes

    4.18       4.18       4.21       4.34       4.01  

Average cost of funds

    1.36       1.18       0.96       0.79       0.58  

Net interest rate spread

    3.01       3.16       3.23       3.41       3.39  

Net interest margin

    3.46       3.56       3.56       3.66       3.59  

 

(1)

Annualized

 

Page 6

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters

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

 

    2023     2022  
   

IVQ

   

IIIQ

   

IIQ

   

IQ

   

IVQ

 

CAPITAL RATIOS

                                       

BankFinancial Corporation (1)

                                       

Equity to total assets (end of period)

    10.45 %     10.21 %     9.98 %     9.87 %     9.63 %

Tangible equity to tangible total assets (end of period)

    10.45       10.21       9.98       9.87       9.63  

Risk–based total capital ratio

    20.70       19.13       17.75       16.98       17.00  

Common Tier 1 (CET1)

    17.66       16.30       15.05       14.34       14.43  

Risk–based tier 1 capital ratio

    17.66       16.30       15.05       14.34       14.43  

Tier 1 leverage ratio

    10.54       10.38       10.23       10.03       9.73  

Tier 1 capital

  $ 157,246     $ 156,780     $ 156,050     $ 155,789     $ 156,086  

BankFinancial, NA (2)

                                       

Risk–based total capital ratio

    18.96 %     17.90 %     16.64 %     15.88 %     16.04 %

Common Tier 1 (CET1)

    18.13       17.10       15.83       15.04       15.28  

Risk–based tier 1 capital ratio

    18.13       17.10       15.83       15.04       15.28  

Tier 1 leverage ratio

    10.85       10.93       10.80       10.52       10.31  

Tier 1 capital

  $ 161,037     $ 164,172     $ 163,806     $ 163,249     $ 165,252  
                                         

COMMON STOCK AND DIVIDENDS

                                       

Stock Prices:

                                       

Close

  $ 10.26     $ 8.62     $ 8.18     $ 8.75     $ 10.53  

High

    10.76       9.11       8.94       10.59       10.60  

Low

    8.31       7.98       7.17       8.55       9.06  

Common shares outstanding

    12,475,881       12,547,390       12,600,478       12,693,993       12,742,597  

Book value per share

  $ 12.45     $ 12.25     $ 12.09     $ 12.00     $ 11.90  

Tangible book value per share

  $ 12.45     $ 12.25     $ 12.09     $ 12.00     $ 11.90  

Cash dividends declared on common stock

  $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.10  

Dividend payout ratio

    60.33 %     53.16 %     54.88 %     48.36 %     37.45 %

Stock repurchases

  $ 676     $ 471     $ 744     $ 502     $ 1,760  

Stock repurchases – shares

    71,509       53,088       93,515       48,604       179,577  
                                         

EARNINGS PER SHARE COMPUTATIONS

                                       

Net income

  $ 2,079     $ 2,369     $ 2,312     $ 2,633     $ 3,438  

Weighted average basic and dilutive common shares outstanding

    12,526,673       12,578,494       12,667,129       12,721,841       12,861,529  

Basic and diluted earnings per common share

  $ 0.17     $ 0.19     $ 0.18     $ 0.21     $ 0.27  

 

(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. Other BankFinancial, NA capital data is included for informational purposes only. 

 

Page 7