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): March 1, 2006
BANKFINANCIAL CORPORATION
--------------------------
(Exact Name of Registrant as Specified in Charter)
Maryland 0-25233 75-3199276
-------------------------- ------------------ ---------------
(State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer
of Incorporation) Identification No.)
15W060 North Frontage Road, Burr Ridge, Illinois 60527
- ------------------------------------------------ ----------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (630) 242-7700
--------------
Not Applicable
-----------------
(Former name or former address, 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))
Item 2.02. Results of Operations and Financial Condition
---------------------------------------------
On March 1, 2006, the Company issued a press release reporting earnings for
the three months and for the year ended December 31, 2005. The press release is
included as Exhibit 99 to this report. The information included in Exhibit 99 is
considered to be "furnished" under the Securities Exchange Act of 1934.
Item 9.01. Financial Statements and Exhibits
---------------------------------
The Index of Exhibits immediately precedes the attached exhibits.
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
DATE: March 1, 2006 By: /s/ F. Morgan Gasior
--------------------------------------------
F. Morgan Gasior
Chairman of the Board, Chief Executive Officer
and President
EXHIBIT INDEX
The following exhibits are furnished as part of this report:
Exhibit No. Description
----------- ------------
99 Press Release of BankFinancial Corporation
EXHIBIT 99
PRESS RELEASE OF BANKFINANCIAL CORPORATION
BankFinancial
-------------
15W060 North Frontage Road
Burr Ridge, Illinois 60527
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Net Income of
$2.9 million, or $0.13 per Share for Fourth Quarter of 2005.
Burr Ridge, Illinois - (March 1, 2006) BankFinancial Corporation (Nasdaq -
BFIN) ("BankFinancial") today reported net income of $2.9 million for the three
months ended December 31, 2005, and basic earnings per share of $0.13 for this
three-month period. For the year ended December 31, 2005, BankFinancial reported
net income of $11.1 million, and basic earnings per share of $0.29.
BankFinancial's basic earnings per share for 2005 only reflect earnings during
the period after June 23, 2005, the date of BankFinancial's mutual-to-stock
conversion, because no common shares were outstanding before then.
Overview
Net income for the fourth quarter of 2005 was $2.9 million, compared to
$3.7 million for the third quarter of 2005. Our third quarter net income was
favorably affected by two non-recurring items - a tax recovery of $473,000 and
approximately $150,000 in pre-tax net interest income on stock subscription
order receipts relating to our mutual-to-stock conversion that we refunded
during the third quarter. Our fourth quarter net income included a $281,000
pre-tax expense relating to the accelerated amortization of a purchase
accounting adjustment resulting from the pre-payment of a loan that we acquired
in our acquisition of Success Bancshares. We also increased our allowance for
loan and lease losses with a provision of $524,000 in the fourth quarter
primarily to support loan growth, compared to a $334,000 provision in the third
quarter.
Net loans receivable increased by $96.2 million during the fourth quarter.
We maintained our focus on deploying conversion proceeds into targeted loan
categories such as multi-family real estate loans (an increase of $37.3 million,
or 15.4%), commercial leases (an increase of $29.6 million, or 32.1%) and
commercial loans (an increase of $4.5 million, or 6.9%). This level of loan
growth was caused in part by seasonal and market factors and is not necessarily
indicative of future loan growth. Future loan growth could also be adversely
affected by our unwillingness to compete for loans by relaxing our historical
underwriting standards.
Our allowance for loan and lease losses totaled $11.5 million at the end of
the fourth quarter - an increase of approximately $583,000 primarily due to
fourth quarter loan growth - representing 0.93% of total loans and 201% of
nonperforming loans. Our ratio of nonperforming loans to total loans declined
from 0.63% in the third quarter to 0.46% in the fourth quarter.
We experienced some net interest margin compression in the fourth quarter
due to the flat yield curve and highly competitive loan and deposit pricing in
the Chicago banking market. Although the loan growth that we experienced
improved interest income - yields on loans increased by 4 basis points and yield
on earning assets increased by 17 basis points - this increase was surpassed by
a 39 basis point increase in our deposit costs. As a result, our net interest
margin declined 4 basis points from 3.65% in the third quarter to 3.61% in the
fourth quarter, and our net interest rate spread declined 16 basis points from
3.07% in the third quarter to 2.91% in the fourth quarter. The accelerated
purchase accounting adjustment that we recorded in the fourth quarter reduced
our net interest rate spread by 7 basis points, while the net interest earned on
subscription order receipts in the third quarter added 4 basis points to our
third quarter net interest margin and interest rate spread.
Our noninterest expense increased $119,000, or 1.0%, in the fourth quarter.
The increase was due in substantial part to increases in utility and real estate
tax expenses, advertising expenses relating to deposit origination initiatives,
and information technology expenses relating to the design and implementation of
enhancements to our corporate performance management and reporting systems.
Partially offsetting these increases were declines in consulting, legal and
other expenses.
Our net income was $11.1 million for the year ended December 31, 2005,
compared to net income of $1.5 million in 2004. Our 2004 net income was
unfavorably affected by impairment charges that we recorded on Fannie Mae and
Freddie Mac floating rate preferred stocks and yield adjustment amortization
expenses resulting from our prepayment of certain Federal Home Loan Bank
advances. Our mutual-to-stock conversion was completed on June 23, 2005, and our
financial condition and results of operation after that date include the
favorable impact of the net proceeds of the conversion. Our 2005 net income
includes pre-tax compensation expenses in the amount of $718,000 relating to the
ESOP that we established in connection with the conversion.
We entered into an agreement during the fourth quarter to acquire
University National Bank, a privately held community bank with $111 million in
assets located in the Hyde Park community of Chicago. The transaction is
presently scheduled to close in the second quarter of 2006. We expect University
National Bank's strong core deposit base and low loan to deposit ratio will help
mitigate future net interest margin compression pressures.
Conference Call
BankFinancial's executive management will hold a conference call to discuss
the contents of this news release, as well as business and financial highlights,
on Friday, March 3, 2006, at 9:30 a.m. CST. The telephone number for the
conference call is 866-700-0133 and the participant passcode is 50155679. The
conference call will also be available by webcast within the Stockholder
Information section of the company's web site: www.bankfinancial.com.
About BankFinancial
BankFinancial Corporation is the holding company for BankFinancial F.S.B.,
a full-service, community-oriented savings bank providing financial services to
individuals, families and businesses through our 16 full-service banking
offices, located in Cook, DuPage, Lake and Will counties, Illinois. At December
31, 2005, BankFinancial Corporation had total assets of $1.6 billion, total
deposits of $1.1 billion and stockholders' equity of $329 million. BankFinancial
Corporation's common stock is listed on the Nasdaq National Market under the
symbol BFIN. Additional information may be found at the company's web site,
www.bankfinancial.com.
Page 2
Safe Harbor
Certain statements made in this release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. When used in this release, the words "may," "will," "should," "would,"
"anticipate," "estimate," "expect," "plan," "believe," "intend," and similar
expressions identify forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements to be materially different from
the results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the following
without limitation: general, regional, and local economic conditions and their
effect on interest rates, the company and its customers; credit risks and risks
from concentrations (geographic and by industry) within the loan portfolio;
changes in regulations or accounting policies affecting financial institutions;
the costs and effects of litigation and of unexpected or adverse outcomes of
such litigation; technological changes; acquisitions and integration of acquired
business; the failure of assumptions underlying the establishment of resources
for loan losses and estimations of values of collateral and various financial
assets and liabilities; the outcome of efforts to manage interest rate or
liquidity risk; competition; and acts of war or terrorism. The Company
undertakes no obligation to release revisions to these forward-looking
statements or to reflect events or conditions occurring after the date of this
release.
For Further Information
Shareholders, Analysts and Investors: Media:
Terence C. Wise Gregg T. Adams
Vice President - Investor Relations Executive Vice President
BankFinancial Corporation - Marketing and Sales
Telephone: 630-242-7151 BankFinancial Corporation
Telephone: 630-242-7226
Page 3
BANKFINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in thousands; except per share) - (Unaudited)
December 31, December 31,
2005 2004
------------ -------------
ASSETS
Cash and due from other financial institutions $ 34,437 $ 27,867
Interest-bearing deposits in other financial institutions 3,589 1,431
------------ ------------
Cash and cash equivalents 38,026 29,298
Securities available-for-sale, at fair value 248,238 268,093
Loans held-for-sale 375 5,531
Loans receivable, net of allowance for loan losses:
December 31, 2005, $11,514; and December 31, 2004, $11,019 1,231,891 1,091,952
Stock in Federal Home Loan Bank, at cost 25,434 24,226
Premises and equipment, net 32,819 32,954
Accrued interest receivable 6,598 5,420
Goodwill 10,865 10,865
Core deposit intangible 8,248 9,882
Other assets 11,942 14,561
------------ ------------
Total assets $ 1,614,436 $ 1,492,782
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits 1,067,874 1,115,696
Borrowings 191,388 264,742
Advance payments by borrowers taxes and insurance 7,969 7,074
Accrued interest payable and other liabilities 18,428 10,382
------------ ------------
Total liabilities 1,285,659 1,397,894
Commitments and contingent liabilities
Stockholders' equity
Preferred Stock, $0.01 par value, 25,000,000 shares authorized, none
issued or outstanding - -
Common Stock, $0.01 par value, 100,000,000 shares authorized,
24,466,250 shares issued and outstanding, at December 31, 2005,
none issued and outstanding at December 31, 2004 245 -
Additional paid-in capital 240,235 -
Retained earnings, substantially restricted 107,528 96,455
Unearned Employee Stock Ownership Plan shares (19,084) -
Accumulated other comprehensive loss (147) (1,567)
------------ ------------
Total stockholders' equity 328,777 94,888
------------ ------------
Total liabilities and stockholders' equity $ 1,614,436 $ 1,492,782
============ ============
Page 4
BANKFINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands; except per share) - (Unaudited)
Three Months Ended Year Ended
December 31, December 31,
--------------------------------- ----------------------------------
2005 2004 2005 2004
---------------- ---------------- ---------------- -----------------
Interest and dividend income
Loans, including fees $ 18,097 $ 14,981 $ 66,328 $ 56,630
Securities 2,659 2,239 11,640 8,144
Other 354 379 1,954 1,524
---------- ---------- ---------- ----------
Total interest income 21,110 17,599 79,922 66,298
Interest expense
Deposits 5,852 4,233 20,598 14,198
Borrowings 1,702 1,994 8,204 9,272
---------- ---------- ---------- ----------
Total interest expense 7,554 6,227 28,802 23,470
---------- ---------- ---------- ----------
Net interest income 13,556 11,372 51,120 42,828
Provision (credit) for loan losses 524 190 518 (22)
---------- ---------- ---------- ----------
Net interest income after
provision (credit) for loan losses 13,032 11,182 50,602 42,850
Noninterest income
Fees and service charges 1,557 1,491 5,950 5,503
Insurance commissions and annuities
income 242 221 848 782
Gain on sale of loans 27 105 206 321
Gain on sale of securities - 180 - 599
Loan servicing fees 249 265 1,031 987
Amortization and impairment of
servicing assets 18 (257) (508) (772)
Operations of real estate owned - 22 4 509
Other 441 367 1,424 1,129
---------- ---------- ---------- ----------
Total noninterest income 2,534 2,394 8,955 9,058
Noninterest expense
Compensation and benefits 7,398 6,388 28,227 25,875
Office occupancy and equipment 1,377 1,306 5,058 5,112
Advertising and public relations 216 215 841 856
Data processing 814 718 2,967 2,765
Supplies, telephone, and postage 468 486 1,901 1,961
Amortization of intangibles 405 422 1,634 1,701
Loss on impairment of securities
available for sale - 3,293 - 8,793
Other 832 909 3,578 3,652
---------- ---------- ---------- ----------
Total noninterest expense 11,510 13,737 44,206 50,715
---------- ---------- ---------- ----------
Income (loss) before income taxes 4,056 (161) 15,351 1,193
Income tax expense (benefit) 1,137 (257) 4,278 (264)
---------- ----------- ---------- ----------
Net income $ 2,919 $ 96 $ 11,073 $ 1,457
========== ========== ========== ==========
Earnings per basic share $ 0.13 N.A. 0.29 N.A.
========== ==========
N.A. = not applicable
Page 5
BANKFINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND
COMPREHENSIVE INCOME (LOSS)
(Dollars in thousands) - (Unaudited)
Unearned
Employee Accumulated
Additional Stock Other Comprehensiv
Common Paid-in Retained Ownership Comprehensive Income
Stock Capital Earnings Plan Shares Income (Loss) Total (Loss)
------- --------- --------- ----------- ------------- ----- -----------
Balance at
December 31, 2003 $ - $ - $94,998 $ - $ 1,689 $ 96,687
-------- ---------- ------- -------- --------- ----------
Comprehensive loss
Net income - - 1,457 - - 1,457 $ 1,457
Change in other
comprehensive loss,
net of tax effects - - - - (3,256) (3,256) (3,256)
-------- ---------- ------- -------- --------- ---------- --------
Total comprehensive
loss $ (1,799)
========
Balance at
December 31, 2004 $ - $ - $96,455 $ - $ (1,567) $ 94,888
Comprehensive income
Net income - - 11,073 - - 11,073 $ 11,073
Change in other
comprehensive income,
net of tax effects - - - - 1,420 1,420 1,420
-------- ---------- ------- -------- --------- --------- --------
Total comprehensive
income $ 12,493
========
Net proceeds from common
stock issued 245 240,007 - (19,573) - 220,679
ESOP shares earned - 228 - 489 - 717
-------- ---------- ------- -------- --------- ----------
Balance at
December 31, 2005 $ 245 $ 240,235 107,528 $(19,084) $ (147) $ 328,777
======== ========== ======= ======== ========= ==========
Page 6
BANKFINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
Three Months Ended December 31, 2005 and 2004
(Dollars in thousands) - (Unaudited)
Three months ended December 31, 2005 Three months ended December 31, 2004
------------------------------------- -------------------------------------
Average Average
Outstanding Outstanding
Balance Interest Yield/Rate(1) Balance Interest Yield/Rate(1)
----------- ---------- ----------- ----------- -------- -----------
Interest-earning assets:
Loans $1,197,545 $ 18,097 6.04% $1,095,117 $ 14,981 5.47%
Securities available-for-sale 266,167 2,659 4.00 267,589 2,239 3.35
Stock in FHLB 25,311 237 3.75 24,047 357 5.94
Other 12,182 117 3.84 4,411 22 2.00
---------- ---------- -------- ---------- ---------- --------
Total interest-earning assets 1,501,205 21,110 5.62 1,391,164 17,599 5.06
---------- ----------
Noninterest-earning assets 72,662 84,843
---------- ----------
Total assets $1,573,867 $1,476,007
========== ==========
Interest-bearing liabilities:
Savings deposits $ 120,373 239 0.79 $ 131,193 254 0.77
Money market deposits 246,569 2,123 3.44 209,671 980 1.87
NOW deposits 216,246 653 1.21 225,632 408 0.72
Certificates of deposit 348,707 2,837 3.25 448,133 2,591 2.31
---------- ---------- -------- ---------- ---------- --------
Total deposits 931,895 5,852 2.51 1,014,629 4,233 1.67
Borrowings 182,613 1,702 3.73 242,543 1,994 3.29
---------- ---------- -------- ---------- ---------- --------
Total interest-bearing
liabilities 1,114,508 7,554 2.71 1,257,172 6,227 1.98
---------- ----------
Noninterest-bearing liabilities 132,810 124,204
---------- ----------
Total liabilities 1,247,318 1,381,376
Equity 326,549 94,631
---------- ----------
Total liabilities and equity $1,573,867 $1,476,007
========== ==========
Net interest income $ 13,556 $ 11,372
========== ==========
Net interest rate spread (2) 2.91% 3.08%
Net interest-earning assets (3) $ 386,697 $ 133,992
========== ==========
Net interest margin (4) 3.61% 3.27%
Ratio of interest-earning
assets to
interest-bearing liabilities 134.70% 110.66%
(1) Annualized.
(2) Net interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
(3) Net interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total
interest-earning assets.
Page 7
BANKFINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
Three Months Ended December 31, 2005 and September 30, 2005
(Dollars in thousands) - (Unaudited)
Three months ended December 31, 2005 Three months ended September 30, 2005
------------------------------------- -------------------------------------
Average Average
Outstanding Outstanding
Balance Interest Yield/Rate(1) Balance Interest Yield/Rate(1)
----------- ---------- ----------- ----------- -------- -----------
Interest-earning assets:
Loans $1,197,545 $18,097 6.04% $1,130,131 $ 16,950 6.00%
Securities available-for-sale 266,167 2,659 4.00 337,098 3,229 3.83
Stock in FHLB 25,311 237 3.75 25,043 308 4.92
Other 12,182 117 3.84 27,962 228 3.26
---------- ------- -------- ---------- ---------- --------
Total interest-earning assets 1,501,205 21,110 5.62 1,520,234 20,715 5.45
------- ----------
Noninterest-earning assets 72,662 87,043
---------- ----------
Total assets $1,573,867 $1,607,277
========== ==========
Interest-bearing liabilities:
Savings deposits $ 120,373 239 0.79 $ 125,949 249 0.79
Money market deposits 246,569 2,123 3.44 222,645 1,578 2.84
NOW deposits 216,246 653 1.21 239,294 583 0.97
Certificates of deposit 348,707 2,837 3.25 369,352 2,672 2.89
---------- ------- -------- ---------- ---------- --------
Total deposits 931,895 5,852 2.51 957,240 5,082 2.12
Borrowings 182,613 1,702 3.73 191,076 1,755 3.67
---------- ------- -------- ---------- ---------- --------
Total interest-bearing
liabilities 1,114,508 7,554 2.71 1,148,316 6,837 2.38
------- ----------
Noninterest-bearing liabilities 132,810 134,903
---------- ----------
Total liabilities 1,247,318 1,283,219
Equity 326,549 324,058
---------- ----------
Total liabilities and equity $1,573,867 $1,607,277
========== ==========
Net interest income $13,556 $ 13,878
======= ==========
Net interest rate spread (2) 2.91% 3.07%
Net interest-earning assets (3) $ 386,697 $ 371,918
========== ==========
Net interest margin (4) 3.61% 3.65%
Ratio of interest-earning
assets to
interest-bearing liabilities 134.70% 132.39%
(1) Annualized.
(2) Net interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
(3) Net interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total
interest-earning assets.
Page 8
BANKFINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
Years Ended December 31, 2005 and 2004
(Dollars in thousands) - (Unaudited)
Year ended December 31, 2005 Year ended December 31, 2004
------------------------------------- -------------------------------------
Average Average
Outstanding Outstanding
Balance Interest Yield/Rate Balance Interest Yield/Rate
----------- ---------- ----------- ----------- -------- -----------
Interest-earning assets:
Loans $1,131,374 $ 66,328 5.86% $1,091,293 $ 56,630 5.19%
Securities available-for-sale 315,379 11,640 3.69 255,999 8,144 3.18
Stock in FHLB 24,870 1,208 4.86 23,521 1,420 6.04
Other 24,219 746 3.08 9,022 104 1.15
---------- ---------- -------- ---------- ---------- --------
Total interest-earning assets 1,495,842 79,922 5.34 1,379,835 66,298 4.80
---------- ----------
Noninterest-earning assets 88,837 86,107
---------- ----------
Total assets $1,584,679 $1,465,942
========== ==========
Interest-bearing liabilities:
Savings deposits $ 128,867 1,005 0.78 $ 134,491 825 0.61
Money market deposits 223,334 6,350 2.84 181,596 2,667 1.47
NOW deposits 268,404 2,290 0.85 232,193 1,249 0.54
Certificates of deposit 391,883 10,953 2.79 449,218 9,457 2.11
---------- ---------- -------- ---------- ---------- --------
Total deposits 1,012,488 20,598 2.03 997,498 14,198 1.42
Borrowings 229,355 8,204 3.58 251,331 9,272 3.69
---------- ---------- -------- ---------- ---------- --------
Total interest-bearing
liabilities 1,241,843 28,802 2.32 1,248,829 23,470 1.88
---------- ----------
Noninterest-bearing liabilities 129,204 122,616
---------- ----------
Total liabilities 1,371,047 1,371,445
Equity 213,632 94,497
---------- ----------
Total liabilities and equity $1,584,679 $1,465,942
========== ==========
Net interest income $ 51,120 $ 42,828
========== ==========
Net interest rate spread (1) 3.02% 2.92%
Net interest-earning assets (2) $ 253,999 $ 131,006
========== ==========
Net interest margin (3) 3.42% 3.10%
Ratio of interest-earning
assets to
interest-bearing liabilities 120.45% 110.49%
(1) Net interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
(2) Net interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total
interest-earning assets.
Page 9
BANKFINANCIAL CORPORATION
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
PERFORMANCE MEASUREMENTS: 2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
Return on assets (ratio of net income
to average total assets) 0.74% 0.92% 0.68% 0.44% 0.03%
Return on equity (ratio of net income
to average equity) 3.58 4.56 9.12 6.65 0.41
Net interest rate spread 2.91 3.07 2.96 2.99 3.08
Net interest margin 3.61 3.65 3.18 3.19 3.27
Efficiency ratio 71.54 69.41 72.87 82.15 99.79
Noninterest expense to average total
assets 2.93 2.83 2.55 2.88 3.72
Average interest-earning assets to
average interest-bearing liabilities 134.70 132.39 111.42 110.21 110.66
Offices 16 16 16 16 16
Employees (full time equivalents) 451 449 429 442 446
- ------------------------------------------------------------------------------------------------------
SUMMARY INCOME STATEMENT: 2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
Total interest income $ 21,110 $ 20,715 $ 20,055 $ 18,042 $ 17,599
Total interest expense 7,554 6,837 7,577 6,834 6,227
-------- -------- -------- --------- --------
Net interest income before provision 13,556 13,878 12,478 11,208 11,372
Provision (credit) for loan losses 524 334 (264) (76) 190
-------- -------- -------- --------- --------
Net interest income 13,032 13,544 12,742 11,284 11,182
Noninterest income 2,534 2,534 2,035 1,852 2,394
Noninterest expense 11,510 11,391 10,576 10,729 13,737
-------- -------- -------- --------- --------
Income (loss) before income tax 4,056 4,687 4,201 2,407 (161)
Income tax expense (benefit) 1,137 990 1,380 771 (257)
-------- -------- -------- --------- --------
Net income $ 2,919 $ 3,697 $ 2,821 $ 1,636 $ 96
======== ======== ======== ========= ========
Earnings per basic share $ 0.13 $ 0.16 N.M. N.A. N.A.
======== ========
N.M. = not meaningful; N.A. = not applicable
- ------------------------------------------------------------------------------------------------------
NONINTEREST INCOME AND EXPENSE: 2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
Noninterest Income:
Fee income $ 1,557 $ 1,623 $ 1,489 $ 1,281 $ 1,491
Insurance commissions and annuities
income 242 265 229 112 221
Gain on sales of loans 27 50 46 83 105
Gain on sales of investment securities - - - - 180
Loan servicing fee income 249 257 262 263 265
Amortization and impairment of servicing
Assets 18 (73) (328) (125) (257)
REO operations - (1) (3) 8 22
Other 441 413 340 230 367
-------- -------- -------- -------- --------
Total noninterest income $ 2,534 $ 2,534 $ 2,035 $ 1,852 $ 2,394
======== ======== ======== ======== ========
Noninterest Expense:
Compensation $ 7,398 $ 7,335 $ 6,557 $ 6,937 $ 6,388
Office occupancy 1,377 1,275 1,191 1,215 1,306
Advertising 216 177 238 210 215
Data processing 814 777 710 666 718
Supplies, telephone and postage 468 490 450 493 486
Amortization of intangibles 405 410 409 410 422
Loss on impairment of securities
available for sale - - - - 3,293
Other general & administrative 832 927 1,021 798 909
-------- -------- -------- -------- --------
Total noninterest expenses $ 11,510 $ 11,391 $ 10,576 $ 10,729 $ 13,737
======== ======== ======== ======== ========
- -------------------------------------------------------------------------------------------------------
Page 10
BANKFINANCIAL CORPORATION
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
SUMMARY BALANCE SHEET: 2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
ASSETS:
Cash $ 34,437 $ 28,016 $ 26,035 $ 27,096 $ 27,867
Interest-bearing deposits and short
term
Investments 3,589 54,373 87,720 1,484 1,431
Securities available for sale, net 248,238 258,981 476,702 274,506 268,093
Loans held for sale 375 523 1,042 5,737 5,531
Loans receivable, net 1,231,891 1,135,709 1,100,119 1,090,316 1,091,952
Federal Home Loan Bank stock 25,434 25,197 24,889 24,558 24,226
Premises and equipment 32,819 32,810 33,008 33,046 32,954
Intangible assets 19,113 19,518 19,928 20,337 20,747
Other assets 18,540 17,953 17,280 18,417 19,981
---------- ---------- ---------- ---------- ----------
Total assets $1,614,436 $1,573,080 $1,786,723 $1,495,497 $1,492,782
========== ========== ========== ========== ==========
LIABILITIES AND EQUITY:
Deposits $1,067,874 $1,044,242 $1,230,945 $1,108,637 $1,115,696
Borrowings 191,388 181,252 213,775 272,073 264,742
Other liabilities 26,397 22,260 19,823 15,778 17,456
--------- --------- ---------- --------- ----------
Total liabilities 1,285,659 1,247,754 1,464,543 1,396,488 1,397,894
Stockholders' equity 328,777 325,326 322,180 99,009 94,888
---------- ---------- ---------- ---------- ----------
Total liabilities and equity $1,614,436 $1,573,080 $1,786,723 $1,495,497 $1,492,782
========== ========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------
CAPITAL RATIOS: 2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
BankFinancial Corporation:
Equity to total assets (end of period) 20.36% 20.68% 18.03% 6.62% 6.36%
Tangible equity to total assets (end of
period) 19.41 19.68 17.11 5.33 5.04
BankFinancial FSB:
Risk-based total capital ratio 19.01 19.91 19.75 10.50 10.35
Risk-based tier 1 capital ratio 18.21 19.11 18.96 9.68 9.53
Tier 1 leverage ratio 13.82 13.96 12.05 7.24 7.12
- --------------------------------------------------------------------------------------------------------
TOTAL DEPOSITS: 2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
Non-interest-bearing demand $ 117,443 $ 109,022 $ 281,227 $ 104,893 $ 104,448
Interest-bearing NOW 227,893 219,457 222,759 227,764 232,968
Money market 248,871 236,285 210,251 209,617 205,933
Savings 123,260 122,783 130,761 132,933 132,009
Certificates of deposit 350,407 356,695 385,947 433,430 440,338
---------- ---------- ---------- ---------- ----------
Total deposits $1,067,874 $1,044,242 $1,230,945 $1,108,637 $1,115,696
========== ========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------
Page 11
BANKFINANCIAL CORPORATION
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
2005 2004
------------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
LOANS:
One- to four-family residential real
estate $ 404,196 $ 395,499 $ 363,952 $ 357,661 $ 362,701
Multi-family mortgage loans 280,238 242,910 236,467 239,363 241,713
Nonresidential real estate 275,418 266,898 271,949 276,330 277,380
Construction and land loans 80,705 74,523 77,070 68,606 59,369
Commercial loans 68,988 64,527 62,977 60,904 63,727
Commercial leases 121,898 92,268 87,427 87,352 86,362
Consumer loans 2,022 1,975 2,391 2,638 2,755
Other loans (including municipal) 5,219 5,492 5,754 5,785 6,044
---------- ---------- ---------- ---------- ----------
Total loans 1,238,684 1,144,092 1,107,987 1,098,639 1,100,051
Loans in process 2,541 193 604 457 824
Net deferred loan origination costs 2,180 2,355 2,124 2,161 2,096
Allowance for loan losses (11,514) (10,931) (10,596) (10,941) (11,019)
---------- ---------- ---------- ---------- ----------
Loans, net $1,231,891 $1,135,709 $1,100,119 $1,090,316 $1,091,952
========== ========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------
CREDIT QUALITY RATIOS: 2005 2004
------------------------------------------------ ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
Nonperforming Loans and Assets:
Nonperforming loans $ 5,723 $ 7,280 $ 6,873 $ 6,176 $ 6,524
Real estate owned 153 - - - -
---------- ---------- ---------- ---------- ----------
Nonperforming assets $ 5,876 $ 7,280 $ 6,873 $ 6,176 $ 6,524
========== ========== ========== ========== ==========
Asset Quality Ratios:
Nonperforming assets to total assets 0.36% 0.46% 0.38% 0.41% 0.44%
Nonperforming loans to total loans 0.46 0.63 0.62 0.56 0.59
Allowance for loan losses to
nonperforming loans 201.19 150.15 154.17 177.15 168.90
Allowance for loan losses to total
loans 0.93 0.96 0.96 1.00 1.00
Net charge-off ratio (0.02) 0.00 0.03 0.00 0.01
- ---------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES: 2005 2004
------------------------------------------------ ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
Beginning balance $ 10,931 $ 10,596 $ 10,941 $ 11,019 $ 10,850
Provision (credit) for loan losses 524 334 (264) (76) 190
Loans charged off (29) (1) (82) (3) (22)
Recoveries 88 2 1 1 1
---------- ---------- ---------- ---------- ----------
Ending balance $ 11,514 $ 10,931 $ 10,596 $ 10,941 $ 11,019
========== ========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------
Page 12
BANKFINANCIAL CORPORATION
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
SELECTED AVERAGE BALANCES:
Average total assets $1,573,867 $1,607,277 $1,661,506 $1,491,570 $1,476,007
Average earning assets 1,501,205 1,520,234 1,568,763 1,403,804 1,391,164
Average total loans 1,197,545 1,130,131 1,104,190 1,104,598 1,095,117
Average investment securities 291,478 362,141 411,386 295,796 291,636
Average other earning assets 12,182 27,962 53,187 3,410 4,411
Average interest-bearing deposits $ 931,895 $ 957,240 $1,161,106 $1,000,877 $1,014,629
Average total borrowings 182,613 191,076 246,861 272,888 242,543
Average interest-bearing liabilities 1,114,508 1,148,316 1,407,967 1,273,765 1,257,172
Average total stockholders' equity 326,549 324,058 123,714 98,420 94,631
- ----------------------------------------------------------------------------------------------------------
2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
SELECTED YIELDS AND COST OF FUNDS:
Average earning assets 5.62% 5.45% 5.11% 5.14% 5.06%
Average total loans 6.04 6.00 5.75 5.58 5.47
Average investment securities 3.97 3.91 3.69 3.55 3.56
Average other earning assets 3.84 3.26 2.90 1.64 2.00
Average interest-bearing deposits 2.51 2.12 1.79 1.79 1.67
Average total borrowings 3.73 3.67 3.86 3.46 3.29
Average interest-bearing liabilities 2.71 2.38 2.15 2.15 1.98
Interest rate spread 2.91 3.07 2.96 2.99 3.08
Net interest margin 3.61 3.65 3.18 3.19 3.27
- ---------------------------------------------------------------------------------------------------------
2005 2004
----------------------------------------------- ------
IVQ IIIQ IIQ IQ IVQ
---- ---- ---- ---- ----
EARNINGS PER SHARE
COMPUTATIONS:
Net income $ 2,919 $ 3,697 $ 2,821 $ 1,636 $ 96
Less: net income before conversion - - 2,821 1,636 96
---------- ---------- -------- -------- --------
Net income available to common
stockholders $ 2,919 $ 3,697 $ - $ - $ -
========== ========== ======== ======== ========
Average common shares outstanding 24,466,250 24,466,250 N.M. N.A. N.A.
Less: unearned ESOP shares (1,920,152) (1,935,652) N.M. N.A. N.A.
---------- ----------
Weighted average common shares
outstanding 22,546,098 22,530,598 N.M. N.A. N.A.
========== ==========
Earnings per basic share $ 0.13 $ 0.16 N.M. N.A. N.A.
========== ==========
- --------------------------------------------------------------------------------------------------------
N.M. = not meaningful N.A. = not applicable
Page 13