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): May 15, 2006
BANKFINANCIAL CORPORATION
-------------------------
(Exact Name of Registrant as Specified in Charter)
Maryland 0-51331 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 8.01. Other Events.
On May 15, 2006, the Company issued a press release reporting earnings for
the three months ended March 31, 2006 and announced the filing of a First
Quarter 2006 Financial Review. The press release and First Quarter 2006
Financial Review are included as Exhibits 99.1 and 99.2 to this report.
The information in the preceding paragraph, as well as Exhibits 99.1 and
99.2, is considered to be "furnished" under the Securities Exchange Act of 1934,
and shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, nor shall it be deemed incorporated by reference in any
filing under the Securities Act of 1933.
Item 9.01. Financial Statements and Exhibits.
(a) Not Applicable.
(b) Not Applicable.
(c) Exhibits.
Exhibit No. Description
----------- -----------
99.1 Press Release dated May 15, 2006
99.2 First Quarter 2006 Financial Review
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: May 15, 2006 By: /s/ F. Morgan Gasior
------------------------------------
F. Morgan Gasior
Chairman of the Board and
Chief Executive Officer
BANK FINANCIAL
Corporation
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports First Quarter 2006 Earnings and
Filing of First Quarter Financial Review and Quarterly Report on Form 10-Q
with the Securities and Exchange Commission
Burr Ridge, Illinois - (May 15, 2006) BankFinancial Corporation (Nasdaq -
BFIN) ("BankFinancial") announced that it has filed a First Quarter Financial
Review on Form 8-K and its Quarterly Report on Form 10-Q for the quarter ended
March 31, 2006, with the U.S. Securities and Exchange Commission (the "SEC").
BankFinancial reported net income of $3.1 million, or $0.14 per common
share, for the three months ended March 31, 2006, compared to $2.9 million, or
$0.13 per share for the three months ended December 31, 2005 and $1.6 million
for the three months ended March 31, 2005. Earnings per share was not reported
for the three months ended March 31, 2005 because BankFinancial had no common
shares outstanding prior to June 23, 2005.
At March 31, 2006, BankFinancial had total assets of $1.643 billion, total
loans of $1.261 billion, total deposits of $1.053 billion and stockholders'
equity of $333 million.
The First Quarter Financial Review and the Quarterly Report on Form 10-Q
are available at BankFinancial's Internet site, www.bankfinancial.com and at the
SEC's Internet site, www.sec.gov.
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 18 full-service banking offices,
located in Cook, DuPage, Lake and Will Counties, Illinois. BankFinancial
Corporation became a publicly-traded company on June 24, 2005, and its common
stock trades on the Nasdaq Stock Market under the symbol BFIN.
"Forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995 may be included in this release. A variety of
factors could cause BankFinancial Corporation's actual results to differ from
those expected at the time of this release. Investors are urged to carefully
review and consider the various disclosures made by BankFinancial Corporation in
its periodic reports filed with the Securities and Exchange Commission,
including the risk factors and other information disclosed in BankFinancial
Corporation's Annual Report on Form 10-K for the most recently ended fiscal
year. Copies of these filings are available at no cost on the SEC's web site at
http://www.sec.gov or on BankFinancial's web site at
http://www.bankfinancial.com.
For Further Information
Contact: Shareholder, Analyst
and Investor Inquiries: Media Inquiries:
Terence C. Wise, Gregg T. Adams,
Vice President - Investor Relations Executive Vice President-
Marketing & Sales
BankFinancial Corporation BankFinancial Corporation
Telephone: 630-242-7151 Telephone: 630-242-7234
BANKFINANCIAL
Corporation
15W060 North Frontage Road
Burr Ridge, Illinois 60527
FIRST QUARTER 2006 FINANCIAL REVIEW
BankFinancial Corporation (Nasdaq - BFIN) ("BankFinancial") reported net
income of $3.1 million, or $0.14 per common share, for the three months ended
March 31, 2006, compared to $2.9 million, or $0.13 per share for the three
months ended December 31, 2005 and $1.6 million for the three months ended March
31, 2005. Earnings per share was not reported for the three months ended March
31, 2005 because BankFinancial had no common shares outstanding prior to June
23, 2005.
Overview
Net income for the first quarter of 2006 was $3.1 million, compared to $2.9
million for the fourth quarter of 2005, and $1.6 million for the first quarter
of 2005. Our first quarter net income included a $476,000 pre-tax gain and
$106,000 in fees relating to the sale of surplus property, and reflected a
$196,000 provision for loan losses to support loan growth.
Net loans receivable increased by $29.9 million, or 2.4%, to $1.262 billion
at March 31, 2006, from $1.232 billion at December 31, 2005. The increase
resulted primarily from increased originations in targeted loan categories in
anticipation of our pending acquisition of University National Bank and our plan
to convert a substantial part of its portfolio of lower-yielding securities into
higher-yielding loans. Commercial leases increased $6.2 million, or 5.1%.
Multi-family mortgage loans increased $9.1 million, or 3.3%. Non-residential
real estate loans increased $7.1 million, or 2.6%, and construction loans
increased $5.1 million, or 6.3%. One- to four-family residential mortgage loans
increased by $4.0 million, or 1.0%.
Due to the $29.9 million in net loan growth, we increased our allowance for
performing loans by $228,000. Our allowance for impaired loans remained at $1.8
million, decreasing by a net of $32,000 from December 31, 2005. Our total
allowance for loan and lease losses was $11.7 million at March 31, 2006, or
0.92% of total loans and 367% of nonperforming loans, compared to 0.93% of total
loans and 201% of nonperforming loans at December 31, 2005. Nonperforming loans
continued to decline, decreasing from $5.7 million at December 31, 2005, to $3.2
million at March 31, 2006. Nonperforming loans represented 0.25% of total loans
at March 31, 2006, compared to 0.46% of total loans at December 31, 2005.
Total deposits decreased slightly from $1.068 billion at December 31, 2005,
to $1.053 billion at March 31, 2006, due in part to the unusually strong
seasonal deposit growth that occurred late in the fourth quarter of 2005,
followed by deposit outflows in the first quarter of 2006. Total core deposits
(savings, money market, noninterest bearing demand and NOW accounts) remained
relatively stable as a percentage of total deposits, representing 66.1% of total
deposits at March 31, 2006, compared to 67.2% of total deposits at December 31,
2005.
Our borrowings increased $44.9 million, or 23.4%, to $236.3 million at
March 31, 2006, from $191.4 million at December 31, 2005. The increase was
temporary in nature, as we used the additional borrowings primarily to provide
short-term funding for targeted loan growth in anticipation of the closing our
acquisition of University National Bank and our plan to convert a substantial
part of its securities portfolio into higher-yielding loans. We closed the
acquisition on April 5, 2006, and sold approximately $54 million of University
National Bank's investment securities. We used the net proceeds of the sale of
the securities to repay short-term borrowings.
We continued to experience slight net interest margin compression due to
the flat yield curve and the 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 16 basis points and yield on
earning assets increased by 18 basis points - this increase was surpassed by an
18 basis point increase in our deposit costs and a 23 basis points increase in
our cost of borrowings. As a result, our net interest rate spread declined four
basis points from 2.91% in the fourth quarter of 2005 to 2.87% in the first
quarter, and our net interest margin declined by one basis point from 3.61% in
the fourth quarter to 3.60% in the first quarter.
Our noninterest income increased $221,000, or 8.7%, to $2.8 million for the
first quarter of 2006 compared to $2.5 million for the fourth quarter of 2005.
Noninterest income for the first quarter included a $476,000 pre-tax gain and
$106,000 in fees relating to the sale of surplus property. Noninterest expense
increased 1.0%, or $118,000, from $11.5 million in the fourth quarter of 2005 to
$11.6 million in the first quarter of 2006. Compensation expense increased
primarily due to increased ESOP expenses and seasonally higher employee taxes
totaling $183,000.
University National Bank Acquisition
On April 5, 2005, we acquired University National Bank, a privately held
community bank with $110 million in assets and $101 million in deposits as of
March 31, 2006, and two banking offices in the Hyde Park community in Chicago,
Illinois, for approximately $24 million in cash pursuant to the terms of a Stock
Purchase Agreement with University Bancorporation dated November 29, 2005.
Immediately upon the completion of the stock purchase, University National Bank
was merged into BankFinancial, F.S.B. The transaction will be treated, for
federal and state income tax purposes, as a purchase of University National
Bank's assets pursuant to applicable provisions of the Internal Revenue Code,
making the goodwill and core deposit intangible arising from the transaction
tax-deductible over a period of 15 years.
Cash Dividend
On March 30, 2006, the Board of Directors declared our first cash dividend
on our common stock in the amount of $0.06 per share. This dividend will be
payable on May 19, 2006 to stockholders of record as of May 3, 2006.
Conference Call
BankFinancial's executive management will hold a conference call to discuss
the contents of our news release, this First Quarter Financial Review, as well
as business and financial highlights, on Wednesday, May 17, 2006 at 9:30 a.m.
Central time. The conference call may be accessed by calling 866-831-6247 and
using participant passcode 61601563. The conference call will be simultaneously
webcast at www.bankfinancial.com.
Page 2
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 18 full-service banking
offices, located in Cook, DuPage, Lake and Will counties, Illinois. At March 31,
2006, BankFinancial Corporation had total assets of $1.6 billion, total deposits
of $1.1 billion and stockholders' equity of $333 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.
Safe Harbor
Certain statements made in this financial review 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 -
Marketing and Sales
BankFinancial Corporation BankFinancial Corporation
Telephone: 630-242-7151 Telephone: 630-242-7226
Page 3
BANKFINANCIAL CORPORATION
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in thousands; except per share) - (Unaudited)
March 31, December 31, March 31,
2006 2005 2005
------------- ------------ ------------
ASSETS
Cash and due from other financial institutions $ 31,059 $ 34,437 $ 27,096
Interest-bearing deposits in other financial institutions 11,129 3,589 1,484
------------ ----------- ------------
Cash and cash equivalents 42,188 38,026 28,580
Securities available-for-sale, at fair value 245,641 248,238 274,506
Loans held-for-sale 86 375 5,737
Loans receivable, net of allowance for loan losses:
March 31, 2006, $11,708; December 31, 2005, $11,514;
and March 31, 2005, $10,941 1,261,820 1,231,891 1,090,316
Stock in Federal Home Loan Bank, at cost 25,434 25,434 24,558
Premises and equipment, net 32,182 32,819 33,046
Accrued interest receivable 7,081 6,598 5,620
Goodwill 10,865 10,865 10,865
Core deposit intangible 7,855 8,248 9,472
Other assets 9,969 11,942 12,797
------------ ----------- ------------
Total assets $ 1,643,121 $ 1,614,436 $ 1,495,497
============ =========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits 1,053,411 1,067,874 1,108,637
Borrowings 236,251 191,388 272,073
Advance payments by borrowers taxes and insurance 6,525 7,969 5,300
Accrued interest payable and other liabilities 13,806 18,428 10,478
------------ ----------- ------------
Total liabilities 1,309,993 1,285,659 1,396,488
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 March 31, 2006 and December
31, 2005, none issued and outstanding at March
31, 2005 245 245 -
Additional paid-in capital 240,379 240,235 -
Retained earnings, substantially restricted 109,200 107,528 98,091
Unearned Employee Stock Ownership Plan shares (18,843) (19,084) -
Accumulated other comprehensive loss 2,147 (147) 918
------------ ------------ ------------
Total stockholders' equity 333,128 328,777 99,009
------------ ----------- ------------
Total liabilities and stockholders' equity $ 1,643,121 $ 1,614,436 $ 1,495,497
============ =========== ============
Page 4
BANKFINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands; except per share) - (Unaudited)
Three months ended
---------------------------------------------------
March 31, December 31, March 31,
2006 2005 2005
---------------- --------------- --------------
Interest and dividend income
Loans, including fees $ 19,557 $ 18,097 $ 15,404
Securities 2,497 2,659 2,290
Other 214 354 348
---------- ---------- ----------
Total interest income 22,268 21,110 18,042
Interest expense
Deposits 6,271 5,852 4,471
Borrowings 2,209 1,702 2,363
---------- ---------- ----------
Total interest expense 8,480 7,554 6,834
---------- ---------- ----------
Net interest income 13,788 13,556 11,208
Provision (credit) for loan losses 196 524 (76)
---------- ---------- ----------
Net interest income after
provision (credit) for loan losses 13,592 13,032 11,284
Noninterest income
Fees and service charges 1,402 1,580 1,300
Insurance commissions and annuities income 228 242 112
Gain on sale of loans 37 27 83
Gain on sale of securities - - -
Gain on disposition of premises and equipment 393 - -
Loan servicing fees 244 249 263
Amortization and impairment of servicing assets (61) 18 (125)
Operations of real estate owned (5) - 8
Other 517 418 211
---------- ---------- ----------
Total noninterest income 2,755 2,534 1,852
Noninterest expense
Compensation and benefits 7,668 7,398 6,937
Office occupancy and equipment 1,316 1,377 1,215
Advertising and public relations 165 216 210
Data processing 788 814 666
Supplies, telephone, and postage 507 468 493
Amortization of intangibles 393 405 410
Other 791 832 798
---------- ---------- ----------
Total noninterest expense 11,628 11,510 10,729
---------- ---------- ----------
Income before income taxes 4,719 4,056 2,407
Income tax expense 1,579 1,137 771
---------- ---------- ----------
Net income $ 3,140 $ 2,919 $ 1,636
========== ========== ==========
Earnings per common share $ 0.14 $ 0.13 N.A.
========== ==========
N.A. = not applicable
Page 5
BANKFINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
Three Months Ended March 31, 2006 and 2005
(Dollars in thousands) - (Unaudited)
Three months ended March 31, 2006 Three months ended March 31, 2005
-------------------------------------- ------------------------------------------
Average Average
Outstanding Outstanding
Balance Interest Yield/Rate(1) Balance Interest Yield/Rate(1)
----------- ----------- ------------- ------------ ------------- -------------
Interest-earning assets:
Loans $1,260,870 $ 19,557 6.20% $1,104,598 $ 15,404 5.58%
Securities available-for-sale 245,510 2,497 4.07 271,408 2,290 3.37
Stock in FHLB 25,434 192 3.02 24,388 334 5.48
Other 2,137 22 4.12 3,410 14 1.64
---------- ---------- ---- ---------- ---------- ----
Total interest-earning assets 1,533,951 22,268 5.80 1,403,804 18,042 5.14
Noninterest-earning assets 84,307 87,766
---------- ----------
Total assets $1,618,258 $1,491,570
========== ==========
Interest-bearing liabilities:
Savings deposits $ 120,621 255 0.85 $ 131,952 252 0.76
Money market deposits 247,271 2,209 3.57 205,536 1,035 2.01
NOW deposits 220,335 731 1.33 226,543 482 0.85
Certificates of deposit 344,691 3,076 3.57 436,846 2,702 2.47
---------- ---------- ---- ---------- ---------- ----
Total deposits 932,918 6,271 2.69 1,000,877 4,471 1.79
Borrowings 223,359 2,209 3.96 272,888 2,363 3.46
---------- ---------- ---- ---------- ---------- ----
Total interest-bearing
liabilities 1,156,277 8,480 2.93 1,273,765 6,834 2.15
Noninterest-bearing liabilities 133,329 119,385
---------- ----------
Total liabilities 1,289,606 1,393,150
Stockholders' equity 328,652 98,420
---------- ----------
Total liabilities and
stockholders' equity $1,618,258 $1,491,570
========== ==========
Net interest income $ 13,788 $ 11,208
========== ==========
Net interest rate spread (2) 2.87% 2.99%
Net interest-earning assets (3) $ 377,674 $ 130,039
Net interest margin (4) 3.60% 3.19%
Ratio of interest-earning
assets to
interest-bearing liabilities 132.66% 110.21%
(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 represent 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 6
BANKFINANCIAL CORPORATION
AVERAGE BALANCE SHEET AND NET INTEREST MARGIN
Three Months Ended March 31, 2006 and December 31, 2005
(Dollars in thousands) - (Unaudited)
Three months ended March 31, 2006 Three months ended March 31, 2005
-------------------------------------- ------------------------------------------
Average Average
Outstanding Outstanding
Balance Interest Yield/Rate(1) Balance Interest Yield/Rate(1)
----------- ----------- ------------- ------------ ------------- -------------
Interest-earning assets:
Loans $1,260,870 $ 19,557 6.20% $1,197,545 $18,097 6.04%
Securities available-for-sale 245,510 2,497 4.07 266,167 2,659 4.00
Stock in FHLB 25,434 192 3.02 25,311 237 3.75
Other 2,137 22 4.12 12,182 117 3.84
---------- ---------- ---- ---------- ------- ----
Total interest-earning assets 1,533,951 22,268 5.80 1,501,205 21,110 5.62
Noninterest-earning assets 84,307 72,662
---------- ----------
Total assets $1,618,258 $1,573,867
========== ==========
Interest-bearing liabilities:
Savings deposits $ 120,621 255 0.85 $ 120,373 239 0.79
Money market deposits 247,271 2,209 3.57 246,569 2,123 3.44
NOW deposits 220,335 731 1.33 216,246 653 1.21
Certificates of deposit 344,691 3,076 3.57 348,707 2,837 3.25
---------- ---------- ---- ---------- ------- ----
Total deposits 932,918 6,271 2.69 931,895 5,852 2.51
Borrowings 223,359 2,209 3.96 182,613 1,702 3.73
---------- ---------- ---- ---------- ------- ----
Total interest-bearing
liabilities 1,156,277 8,480 2.93 1,114,508 7,554 2.71
Noninterest-bearing liabilities 133,329 132,810
---------- ----------
Total liabilities 1,289,606 1,247,318
Stockholders' equity 328,652 326,549
---------- ----------
Total liabilities and
stockholders' equity $1,618,258 $1,573,867
========== ==========
Net interest income $ 13,788 $13,556
========== =======
Net interest rate spread (2) 2.87% 2.91%
Net interest-earning assets (3) $ 377,674 $ 386,697
========== ==========
Net interest margin (4) 3.60% 3.61%
Ratio of interest-earning
assets to interest-bearing
liabilities 132.66% 134.70%
(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 represent 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
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
PERFORMANCE MEASUREMENTS: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Return on assets (ratio of net income
to average total assets) 0.78% 0.74% 0.92% 0.68% 0.44%
Return on equity (ratio of net income
to average equity) 3.82 3.58 4.56 9.12 6.65
Net interest rate spread 2.87 2.91 3.07 2.96 2.99
Net interest margin 3.60 3.61 3.65 3.18 3.19
Efficiency ratio 70.29 71.54 69.41 72.87 82.15
Noninterest expense to average total
assets 2.87 2.93 2.83 2.55 2.88
Average interest-earning assets to
average interest-bearing liabilities 132.66 134.70 132.39 111.42 110.21
Offices 16 16 16 16 16
Employees (full time equivalents) 443 451 449 429 442
- -------------------------------------------------------------------------------------------------------
SUMMARY INCOME STATEMENTS: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Total interest income $ 22,268 $ 21,110 $ 20,715 $ 20,055 $ 18,042
Total interest expense 8,480 7,554 6,837 7,577 6,834
-------- -------- -------- -------- --------
Net interest income before provision 13,788 13,556 13,878 12,478 11,208
Provision (credit) for loan losses 196 524 334 (264) (76)
-------- -------- -------- -------- --------
Net interest income 13,592 13,032 13,544 12,742 11,284
Noninterest income 2,755 2,534 2,534 2,035 1,852
Noninterest expense 11,628 11,510 11,391 10,576 10,729
-------- -------- -------- -------- --------
Income before income tax 4,719 4,056 4,687 4,201 2,407
Income tax expense 1,579 1,137 990 1,380 771
-------- -------- -------- -------- ---------
Net income $ 3,140 $ 2,919 $ 3,697 $ 2,821 $ 1,636
======== ======== ======== ======== =========
Earnings per common share $ 0.14 $ 0.13 $ 0.16 N.M. N.A.
======== ======== ========
N.M. = not meaningful; N.A. = not applicable
- -------------------------------------------------------------------------------------------------------
NONINTEREST INCOME AND EXPENSE: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Noninterest Income:
Deposit service charges and fees $ 917 $ 986 $ 1,090 $ 952 $ 860
Other fee income 485 594 554 554 440
Insurance commissions and annuities
income 228 242 265 229 112
Gain on sales of loans 37 27 50 46 83
Gain on sales of investment securities - - - - -
Gain on disposition of premises and
equipment 393 - - - -
Loan servicing fee income 244 249 257 262 263
Amortization and impairment of servicing
assets (61) 18 (73) (328) (125)
REO operations (5) - (1) (3) 8
Other 517 418 392 323 211
-------- -------- -------- -------- --------
Total noninterest income $ 2,755 $ 2,534 $ 2,534 $ 2,035 $ 1,852
======== ======== ======== ======== ========
Noninterest Expense:
Compensation $ 7,668 $ 7,398 $ 7,335 $ 6,557 $ 6,937
Office occupancy 1,316 1,377 1,275 1,191 1,215
Advertising 165 216 177 238 210
Data processing 788 814 777 710 666
Supplies, telephone and postage 507 468 490 450 493
Amortization of intangibles 393 405 410 409 410
Other general & administrative 791 832 927 1,021 798
-------- -------- -------- -------- --------
Total noninterest expenses $ 11,628 $ 11,510 $ 11,391 $ 10,576 $ 10,729
======== ======== ======== ======== ========
- -------------------------------------------------------------------------------------------------------
Page 8
BANKFINANCIAL CORPORATION
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
SUMMARY BALANCE SHEET: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
ASSETS:
Cash $ 31,059 $ 34,437 $ 28,016 $ 26,035 $ 27,096
Interest-bearing deposits and short
term investments 11,129 3,589 54,373 87,720 1,484
Securities available for sale, net 245,641 248,238 258,981 476,702 274,506
Loans held for sale 86 375 523 1,042 5,737
Loans receivable, net 1,261,820 1,231,891 1,135,709 1,100,119 1,090,316
Federal Home Loan Bank stock 25,434 25,434 25,197 24,889 24,558
Premises and equipment 32,182 32,819 32,810 33,008 33,046
Intangible assets 18,720 19,113 19,518 19,928 20,337
Other assets 17,050 18,540 17,953 17,280 18,417
---------- ---------- ---------- ---------- ----------
Total assets $1,643,121 $1,614,436 $1,573,080 $1,786,723 $1,495,497
========== ========== ========== ========== ==========
LIABILITIES AND EQUITY:
Deposits $1,053,411 $1,067,874 $1,044,242 $1,230,945 $1,108,637
Borrowings 236,251 191,388 181,252 213,775 272,073
Other liabilities 20,331 26,397 22,260 19,823 15,778
---------- ---------- ---------- ---------- ----------
Total liabilities 1,309,993 1,285,659 1,247,754 1,464,543 1,396,488
Stockholders' equity 333,128 328,777 325,326 322,180 99,009
---------- ---------- ---------- ---------- ---------
Total liabilities and equity $1,643,121 $1,614,436 $1,573,080 $1,786,723 $1,495,497
========== ========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------
CAPITAL RATIOS: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
BankFinancial Corporation:
Equity to total assets (end of period) 20.27% 20.36% 20.68% 18.03% 6.62%
Tangible equity to total assets (end of
period) 19.36 19.41 19.68 17.11 5.33
BankFinancial FSB:
Risk-based total capital ratio 18.56 19.01 19.91 19.75 10.50
Risk-based tier 1 capital ratio 17.77 18.21 19.11 18.96 9.68
Tier 1 leverage ratio 13.83 13.82 13.96 12.05 7.24
- ---------------------------------------------------------------------------------------------------------
COMMON STOCK AND DIVIDENDS: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Stock Prices:
Close $ 15.92 $ 14.68 $ 14.20 $ 13.33 N.A.
High 16.41 14.91 15.00 13.86 N.A.
Low 14.55 12.99 13.10 13.02 N.A.
Cash dividends declared $ 0.06 - - - N.A.
- ---------------------------------------------------------------------------------------------------------
DEPOSITS: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Non-interest-bearing demand $ 105,251 $ 117,443 $ 109,022 $ 281,227 $ 104,893
Interest-bearing NOW 224,732 227,893 219,457 222,759 227,764
Money market 244,916 248,871 236,285 210,251 209,617
Savings 121,016 123,260 122,783 130,761 132,933
Certificates of deposit 357,496 350,407 356,695 385,947 433,430
---------- ---------- ---------- ---------- ----------
Total deposits $1,053,411 $1,067,874 $1,044,242 $1,230,945 $1,108,637
========== ========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------
Page 9
BANKFINANCIAL CORPORATION
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
LOANS:
One- to four-family residential real
estate $ 408,206 $ 404,196 $ 395,499 $ 363,952 $ 357,661
Multi-family mortgage loans 289,364 280,238 242,910 236,467 239,363
Nonresidential real estate 282,496 275,418 266,898 271,949 276,330
Construction and land loans 85,761 80,705 74,523 77,070 68,606
Commercial loans 69,702 68,988 64,527 62,977 60,904
Commercial leases 128,062 121,898 92,268 87,427 87,352
Consumer loans 2,041 2,022 1,975 2,391 2,638
Other loans (including municipal) 5,159 5,219 5,492 5,754 5,785
---------- ---------- ---------- ---------- ----------
Total loans 1,270,791 1,238,684 1,144,092 1,107,987 1,098,639
Loans in process 174 2,180 193 604 457
Net deferred loan origination costs 2,563 2,541 2,355 2,124 2,161
Allowance for loan losses (11,708) (11,514) (10,931) (10,596) (10,941)
---------- ---------- ---------- ---------- ----------
Loans, net $1,261,820 $1,231,891 $1,135,709 $1,100,119 $1,090,316
========== ========== ========== ========== ==========
- ---------------------------------------------------------------------------------------------------------
CREDIT QUALITY RATIOS: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Nonperforming Loans and Assets:
Nonperforming loans $ 3,192 $ 5,723 $ 7,280 $ 6,873 $ 6,176
Real estate owned 56 153 - - -
---------- ---------- ---------- ---------- ----------
Nonperforming assets $ 3,248 $ 5,876 $ 7,280 $ 6,873 $ 6,176
========== ========== ========== ========== ==========
Asset Quality Ratios:
Nonperforming assets to total assets 0.20% 0.36% 0.46% 0.38% 0.41%
Nonperforming loans to total loans 0.25 0.46 0.64 0.62 0.56
Allowance for loan losses to
nonperforming loans 366.79 201.19 150.15 154.17 177.15
Allowance for loan losses to total
loans 0.92 0.93 0.96 0.96 1.00
Net charge-off ratio 0.00 (0.02) 0.00 0.03 0.00
- ---------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Beginning balance $ 11,514 $ 10,931 $ 10,596 $ 10,941 $ 11,019
Provision (credit) for loan losses 196 524 334 (264) (76)
Loans charged off (2) (29) (1) (82) (3)
Recoveries - 88 2 1 1
---------- ---------- ---------- ---------- ----------
Ending balance $ 11,708 $ 11,514 $ 10,931 $ 10,596 $ 10,941
========== ========== ========== ========== =========
- ----------------------------------------------------------------------------------------------------------
Page 10
BANKFINANCIAL CORPORATION
SELECTED FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) - (Unaudited)
SELECTED AVERAGE BALANCES: 2006 2005
-------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Average total assets $1,618,258 $1,573,867 $1,607,277 $1,661,506 $1,491,570
Average earning assets 1,533,951 1,501,205 1,520,234 1,568,763 1,403,804
Average total loans 1,260,870 1,197,545 1,130,131 1,104,190 1,104,598
Average investment securities 270,944 291,478 362,141 411,386 295,796
Average other earning assets 2,137 12,182 27,962 53,187 3,410
Average interest-bearing deposits $ 932,918 $ 931,895 $ 957,240 $1,161,106 $1,000,877
Average total borrowings 223,359 182,613 191,076 246,861 272,888
Average interest-bearing liabilities 1,156,277 1,114,508 1,148,316 1,407,967 1,273,765
Average total stockholders' equity 328,652 326,549 324,058 123,714 98,420
- ---------------------------------------------------------------------------------------------------------
SELECTED YIELDS AND COST OF 2006 2005
FUNDS: -------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Average earning assets 5.80% 5.62% 5.45% 5.11% 5.14%
Average total loans 6.20 6.04 6.00 5.75 5.58
Average investment securities 3.97 3.97 3.91 3.69 3.55
Average other earning assets 4.12 3.84 3.26 2.90 1.64
Average interest-bearing deposits 2.69 2.51 2.12 1.79 1.79
Average total borrowings 3.96 3.73 3.67 3.86 3.46
Average interest-bearing liabilities 2.93 2.71 2.38 2.15 2.15
Interest rate spread 2.87 2.91 3.07 2.96 2.99
Net interest margin 3.60 3.61 3.65 3.18 3.19
- ---------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE 2006 2005
COMPUTATIONS: -------------------------------------------------
IQ IVQ IIIQ IIQ IQ
--------- -------------------------------------------------
Net income $ 3,140 $ 2,919 $ 3,697 $ 2,821 $ 1,636
Less: net income before conversion - - - 2,821 1,636
----------- ----------- ---------- -------- --------
Net income available to common
stockholders $ 3,140 $ 2,919 $ 3,697 $ - $ -
=========== =========== =========== ======== ========
Average common shares outstanding 24,466,250 24,466,250 24,466,250 N.M. N.A.
Less: unearned ESOP shares (1,896,134) (1,920,152) (1,935,652) N.M. N.A.
----------- ----------- -----------
Weighted average common shares
outstanding 22,570,116 22,546,098 22,530,598 N.M. N.A.
=========== =========== ===========
Earnings per common share $ 0.14 $ 0.13 $ 0.16 N.M. N.A.
=========== =========== ===========
N.M. = not meaningful; N.A. = not applicable
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------
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