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 11, 2011
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.) | ||
| 15W060 North Frontage Road, Burr Ridge, Illinois | 60527 | |||
| (Address of Principal Executive Offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (800) 894-6900
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 7.01. | Regulation FD Disclosure |
BankFinancial Corporation (the “Company”) will review first quarter 2011 results in a conference call and webcast for stockholders and analysts on Friday, May 13, 2011 at 9:30 a.m. Chicago Time. The conference call may be accessed by calling (800) 561-2718 and using participant passcode 26038028. The conference call will be simultaneously webcast at www.bankfinancial.com, under Stockholder Information. The conference call will be simultaneously webcast at www.bankfinancial.com, under Stockholder Information.
| Item 8.01. | Other Events |
On May 11, 2011, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and a Quarterly Financial and Statistical Supplement. The press release also reported earnings for the three months ended March 31, 2011. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.
| Item 9.01. | Financial Statements and Exhibits. |
| (a) | Not Applicable. |
| (b) | Not Applicable. |
| (c) | Not Applicable. |
| (d) | Exhibits. |
| Exhibit No. |
Description | |
| 99.1 | Press Release dated May 11, 2011 | |
| 99.2 | Quarterly Financial and Statistical Supplement | |
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: May 11, 2011 |
By: | /s/ F. Morgan Gasior | ||
| F. Morgan Gasior | ||||
| Chairman of the Board and | ||||
| Chief Executive Officer | ||||
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release dated May 11, 2011 | |
| 99.2 | Quarterly Financial and Statistical Supplement | |
Exhibit 99.1
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the First Quarter 2011 and
Will Host a Conference Call and Webcast on May 13, 2011
Burr Ridge, Illinois - (May 11, 2011) BankFinancial Corporation (Nasdaq – BFIN) (“BankFinancial”) announced that it filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 on Tuesday, May 10, 2011. BankFinancial will file its Quarterly Financial and Statistical Supplement on Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”) today. BankFinancial reported a net loss of $777,000, or $0.04 per common share, for the three months ended March 31, 2011, compared to net income of $716,000, or $0.04 per common share, for the three months ended March 31, 2010. The operating results for the quarter ended March 31, 2011 included $1.5 million in expenses relating to BankFinancial’s acquisition of Downers Grove National Bank and a portfolio of seasoned, performing Chicago area multi-family loans.
At March 31, 2011, BankFinancial had total assets of $1.705 billion, total loans of $1.302 billion, total deposits of $1.422 billion and stockholders’ equity of $251 million.
The Quarterly Report on Form 10-Q and the Quarterly Financial and Statistical Supplement will be available today on BankFinancial’s website, www.bankfinancial.com on the “Stockholder Information” 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 first quarter 2011 results in a conference call and webcast for stockholders and analysts on Friday, May 13, 2011 at 9:30 a.m. Chicago Time. The conference call may be accessed by calling (800) 561-2718 and using participant passcode 26038028. The conference call will be simultaneously webcast at www.bankfinancial.com, on the “Stockholder Information” page. For those persons unable to participate in the conference call, the webcast will be archived through 5:00 p.m. Chicago Time on May 27, 2011 on our website.
BankFinancial Corporation is the holding company for BankFinancial, F.S.B., a full-service, community-oriented bank providing financial services to individuals, families and businesses through 20 full-service banking offices, located in Cook, DuPage, Lake and Will Counties, Illinois. BankFinancial Corporation’s common stock trades on the Nasdaq Global Select Market under the symbol BFIN.
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. 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 – Controller BankFinancial Corporation Telephone: 630-242-7151 |
Gregg T. Adams Executive Vice President – Marketing & Sales BankFinancial, F.S.B. Telephone: 630-242-7234 | |
Exhibit 99.2
BANKFINANCIAL CORPORATION
FIRST QUARTER 2011
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 with 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)
| 2011 | 2010 | |||||||||||||||||||
| PERFORMANCE MEASUREMENTS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Return on assets (ratio of net income (loss) to average total assets) (1) |
(0.20 | )% | (1.40 | )% | 0.19 | % | (0.07 | )% | 0.18 | % | ||||||||||
| Return on equity (ratio of net income (loss) to average equity) (1) |
(1.23 | ) | (8.41 | ) | 1.13 | (0.44 | ) | 1.08 | ||||||||||||
| Net interest rate spread (1) |
3.68 | 3.41 | 3.25 | 3.30 | 3.48 | |||||||||||||||
| Net interest margin (1) |
3.81 | 3.57 | 3.45 | 3.53 | 3.73 | |||||||||||||||
| Efficiency ratio |
95.52 | 104.71 | 89.65 | 84.81 | 86.42 | |||||||||||||||
| Noninterest expense to average total assets (1) |
3.71 | 4.00 | 3.35 | 3.14 | 3.25 | |||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities |
122.64 | 123.30 | 122.26 | 122.10 | 122.57 | |||||||||||||||
| Number of full service offices |
20 | 18 | 18 | 18 | 18 | |||||||||||||||
| Employees (full time equivalents) |
385 | (2) | 328 | 327 | 338 | 352 | ||||||||||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| SUMMARY STATEMENT OF OPERATIONS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Total interest income |
$ | 15,348 | $ | 15,448 | $ | 15,892 | $ | 16,451 | $ | 17,145 | ||||||||||
| Total interest expense |
1,996 | 2,442 | 3,138 | 3,677 | 3,929 | |||||||||||||||
| Net interest income before provision |
13,352 | 13,006 | 12,754 | 12,774 | 13,216 | |||||||||||||||
| Provision for loan losses |
2,424 | 8,148 | 419 | 2,665 | 851 | |||||||||||||||
| Net interest income |
10,928 | 4,858 | 12,335 | 10,109 | 12,365 | |||||||||||||||
| Noninterest income |
1,571 | 1,903 | 1,958 | 1,812 | 1,455 | |||||||||||||||
| Noninterest expense |
14,255 | 15,611 | 13,190 | 12,370 | 12,678 | |||||||||||||||
| Income (loss) before income tax |
(1,756 | ) | (8,850 | ) | 1,103 | (449 | ) | 1,142 | ||||||||||||
| Income tax expense (benefit) |
(979 | ) | (3,378 | ) | 366 | (161 | ) | 426 | ||||||||||||
| Net income (loss) |
$ | (777 | ) | $ | (5,472 | ) | $ | 737 | $ | (288 | ) | $ | 716 | |||||||
| Basic earnings (loss) per common share |
$ | (0.04 | ) | $ | (0.28 | ) | $ | 0.04 | $ | (0.01 | ) | $ | 0.04 | |||||||
| Diluted earnings (loss) per common share |
$ | (0.04 | ) | $ | (0.28 | ) | $ | 0.04 | $ | (0.01 | ) | $ | 0.04 | |||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| NONINTEREST INCOME AND EXPENSE: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Noninterest Income: |
||||||||||||||||||||
| Deposit service charges and fees |
$ | 612 | $ | 679 | $ | 776 | $ | 792 | $ | 773 | ||||||||||
| Other fee income |
382 | 452 | 482 | 500 | 434 | |||||||||||||||
| Insurance commissions and annuities income |
169 | 227 | 234 | 179 | 135 | |||||||||||||||
| Gain on sales of loans, net |
19 | 184 | 202 | 68 | 47 | |||||||||||||||
| Gain on sales of securities |
— | — | — | 31 | — | |||||||||||||||
| Loss on disposition of premises and equipment |
(10 | ) | — | (2 | ) | (17 | ) | — | ||||||||||||
| Loan servicing fees |
132 | 137 | 143 | 154 | 170 | |||||||||||||||
| Amortization and impairment of servicing assets |
(54 | ) | (64 | ) | (90 | ) | (78 | ) | (243 | ) | ||||||||||
| Earnings on bank owned life insurance |
158 | 144 | 115 | 92 | 79 | |||||||||||||||
| Other |
163 | 144 | 98 | 91 | 60 | |||||||||||||||
| Total noninterest income |
$ | 1,571 | $ | 1,903 | $ | 1,958 | $ | 1,812 | $ | 1,455 | ||||||||||
| Noninterest Expense: |
||||||||||||||||||||
| Compensation and benefits |
$ | 6,600 | $ | 5,993 | $ | 6,583 | $ | 6,552 | $ | 7,211 | ||||||||||
| Office occupancy and equipment |
1,868 | 1,247 | 1,723 | 1,609 | 1,801 | |||||||||||||||
| Advertising and public relations |
237 | 437 | 321 | 303 | 216 | |||||||||||||||
| Information technology |
948 | 958 | 893 | 961 | 921 | |||||||||||||||
| Supplies, telephone, and postage |
375 | 438 | 391 | 406 | 361 | |||||||||||||||
| Amortization of intangibles |
382 | 392 | 399 | 399 | 405 | |||||||||||||||
| Nonperforming asset management |
455 | 1,898 | 821 | 355 | 268 | |||||||||||||||
| Loss (gain) on sales of other real estate owned |
(52 | ) | 101 | 206 | 112 | — | ||||||||||||||
| Operations of other real estate owned |
505 | 2,683 | 348 | 388 | 134 | |||||||||||||||
| FDIC insurance premiums |
567 | 519 | 520 | 532 | 555 | |||||||||||||||
| Acquisition expense |
1,531 | 81 | — | — | — | |||||||||||||||
| Other |
839 | 864 | 985 | 753 | 806 | |||||||||||||||
| Total noninterest expenses |
$ | 14,255 | $ | 15,611 | $ | 13,190 | $ | 12,370 | $ | 12,678 | ||||||||||
|
|
||||||||||||||||||||
| (1) | Annualized |
| (2) | Full time employee equivalents include 56 employees attributable to Downers Grove National Bank acquisition. |
Page 2
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
| 2011 | 2010 | |||||||||||||||||||
| IQ | IVQ | IIIQ | IIQ | IQ | ||||||||||||||||
| SUMMARY STATEMENT OF FINANCIAL CONDITION |
|
|||||||||||||||||||
| ASSETS: |
||||||||||||||||||||
| Cash and due from other financial institutions |
$ | 14,479 | $ | 18,097 | $ | 12,855 | $ | 13,618 | $ | 13,934 | ||||||||||
| Interest-bearing deposits in other financial institutions |
109,776 | 202,713 | 248,857 | 205,666 | 161,897 | |||||||||||||||
| Securities, at fair value |
121,154 | 120,747 | 78,272 | 84,688 | 94,447 | |||||||||||||||
| Loans held-for-sale |
— | 2,716 | 3,051 | 212 | — | |||||||||||||||
| Loans receivable, net |
1,302,313 | 1,050,766 | 1,098,505 | 1,123,949 | 1,152,385 | |||||||||||||||
| Other real estate owned and other real estate owned in process |
22,713 | 14,622 | 11,158 | 8,929 | 6,882 | |||||||||||||||
| Stock in Federal Home Loan Bank, at cost |
16,346 | 15,598 | 15,598 | 15,598 | 15,598 | |||||||||||||||
| Premises and equipment, net |
37,650 | 32,495 | 32,934 | 33,575 | 34,305 | |||||||||||||||
| Intangible assets |
27,544 | 25,266 | 25,658 | 26,057 | 26,456 | |||||||||||||||
| Bank owned life insurance |
20,739 | 20,581 | 20,437 | 20,322 | 20,230 | |||||||||||||||
| FDIC prepaid expense |
5,158 | 4,845 | 5,315 | 5,785 | 6,268 | |||||||||||||||
| Income tax receivable |
2,523 | 1,749 | 515 | 9,057 | 9,108 | |||||||||||||||
| Deferred taxes, net |
13,112 | 9,333 | 6,726 | 6,735 | 6,160 | |||||||||||||||
| Other assets |
11,724 | 11,127 | 10,539 | 11,448 | 10,984 | |||||||||||||||
| Total assets |
$ | 1,705,231 | $ | 1,530,655 | $ | 1,570,420 | $ | 1,565,639 | $ | 1,558,654 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: |
||||||||||||||||||||
| Deposits |
$ | 1,421,564 | $ | 1,235,377 | $ | 1,260,694 | $ | 1,253,259 | $ | 1,231,971 | ||||||||||
| Borrowings |
15,488 | 23,749 | 29,275 | 35,566 | 48,092 | |||||||||||||||
| Other liabilities |
17,467 | 18,244 | 20,906 | 17,417 | 14,882 | |||||||||||||||
| Total liabilities |
1,454,519 | 1,277,370 | 1,310,875 | 1,306,242 | 1,294,945 | |||||||||||||||
| Stockholders’ equity |
250,712 | 253,285 | 259,545 | 259,397 | 263,709 | |||||||||||||||
| Total liabilities and stockholders’ equity |
$ | 1,705,231 | $ | 1,530,655 | $ | 1,570,420 | $ | 1,565,639 | $ | 1,558,654 | ||||||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| DEPOSITS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Non-interest-bearing demand |
$ | 141,322 | $ | 112,549 | $ | 99,648 | $ | 103,602 | $ | 101,284 | ||||||||||
| Savings deposits |
143,865 | 98,894 | 97,757 | 97,907 | 99,107 | |||||||||||||||
| Money market accounts |
356,352 | 341,048 | 357,557 | 357,078 | 336,089 | |||||||||||||||
| Interest-bearing NOW accounts |
328,493 | 302,812 | 296,537 | 294,157 | 290,929 | |||||||||||||||
| Certificates of deposit – Retail |
451,433 | 379,975 | 405,999 | 390,635 | 390,587 | |||||||||||||||
| Certificates of deposit – Wholesale |
99 | 99 | 3,196 | 9,880 | 13,975 | |||||||||||||||
| Total certificates of deposit |
451,532 | 380,074 | 409,195 | 400,515 | 404,562 | |||||||||||||||
| Total deposits |
$ | 1,421,564 | $ | 1,235,377 | $ | 1,260,694 | $ | 1,253,259 | $ | 1,231,971 | ||||||||||
|
|
||||||||||||||||||||
Page 3
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
| 2011 | 2010 | |||||||||||||||||||
| LOANS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| One-to-four family residential real estate loans |
$ | 300,349 | $ | 256,300 | $ | 267,800 | $ | 276,440 | $ | 283,556 | ||||||||||
| Multi-family mortgage loans |
443,802 | 296,916 | 306,509 | 305,519 | 308,268 | |||||||||||||||
| Nonresidential real estate loans |
326,389 | 281,987 | 293,197 | 306,993 | 307,816 | |||||||||||||||
| Construction and land loans |
29,643 | 18,398 | 17,583 | 18,477 | 26,186 | |||||||||||||||
| Commercial loans |
75,137 | 64,679 | 74,621 | 72,716 | 70,420 | |||||||||||||||
| Commercial leases |
144,923 | 151,107 | 154,254 | 158,990 | 169,633 | |||||||||||||||
| Consumer loans |
3,383 | 2,182 | 2,484 | 2,263 | 2,394 | |||||||||||||||
| Total loans |
1,323,626 | 1,071,569 | 1,116,448 | 1,141,398 | 1,168,273 | |||||||||||||||
| Net deferred loan origination costs |
1,191 | 1,377 | 1,474 | 1,520 | 1,628 | |||||||||||||||
| Allowance for loan losses |
(22,504 | ) | (22,180 | ) | (19,417 | ) | (18,969 | ) | (17,516 | ) | ||||||||||
| Loans, net |
$ | 1,302,313 | (2) | $ | 1,050,766 | $ | 1,098,505 | $ | 1,123,949 | $ | 1,152,385 | |||||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| CREDIT QUALITY RATIOS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Nonperforming Assets: |
||||||||||||||||||||
| Nonaccrual loans: |
||||||||||||||||||||
| One-to-four family residential real estate loans |
$ | 10,649 | $ | 10,059 | $ | 9,180 | $ | 10,788 | $ | 9,064 | ||||||||||
| Multi-family mortgage loans |
13,163 | 13,228 | 18,287 | 16,405 | 13,033 | |||||||||||||||
| Nonresidential real estate loans |
12,830 | 12,428 | 9,858 | 9,511 | 10,810 | |||||||||||||||
| Construction and land loans |
5,331 | 6,139 | 6,139 | 6,948 | 6,948 | |||||||||||||||
| Commercial loans |
3,765 | 3,766 | 4,715 | 4,508 | 4,110 | |||||||||||||||
| Commercial leases |
72 | 72 | 72 | — | — | |||||||||||||||
| Consumer loans |
— | 3 | 3 | 3 | — | |||||||||||||||
| Nonaccrual loans |
45,810 | 45,695 | 48,254 | 48,163 | 43,965 | |||||||||||||||
| Other real estate owned: and other real estate owned in process: |
||||||||||||||||||||
| One-to-four family residential real estate |
3,210 | 3,015 | 3,676 | 1,579 | 1,254 | |||||||||||||||
| Multi-family real estate |
2,794 | 2,486 | 2,033 | 2,649 | 1,958 | |||||||||||||||
| Nonresidential real estate |
9,117 | 7,376 | 3,163 | 3,118 | 2,056 | |||||||||||||||
| Land |
7,592 | 1,745 | 2,286 | 1,583 | 1,614 | |||||||||||||||
| Other real estate owned and other real estate owned in process: |
22,713 | 14,622 | 11,158 | 8,929 | 6,882 | |||||||||||||||
| Less – Acquired other real estate owned |
(7,542 | ) | — | — | — | — | ||||||||||||||
| Other real estate owned, net of acquisition |
15,171 | 14,622 | 11,158 | 8,929 | 6,882 | |||||||||||||||
| Nonperforming assets |
$ | 60,981 | $ | 60,317 | $ | 59,412 | $ | 57,092 | $ | 50,847 | ||||||||||
| Asset Quality Ratios: |
||||||||||||||||||||
| Nonperforming assets to total assets |
3.46 | %(3) | 3.94 | % | 3.78 | % | 3.65 | % | 3.26 | % | ||||||||||
| Nonaccrual loans to total loans |
3.58 | (3) | 4.26 | 4.32 | 4.22 | 3.76 | ||||||||||||||
| Allowance for loan losses to nonaccrual loans |
49.12 | 48.54 | 40.24 | 39.39 | 39.84 | |||||||||||||||
| Allowance for loan losses to total loans |
1.70 | 2.07 | 1.74 | 1.66 | 1.50 | |||||||||||||||
| Net charge-off ratio (1) |
0.75 | 1.96 | (0.01 | ) | 0.42 | 0.66 | ||||||||||||||
|
|
||||||||||||||||||||
| (1) | Annualized |
| (2) | Loans, net includes $12.0 million of purchased impaired loans. |
| (3) | Asset quality ratios exclude purchased impaired loans and acquired other real estate owned. |
Page 4
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
| 2011 | 2010 | |||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Beginning balance |
$ | 22,180 | $ | 19,417 | $ | 18,969 | $ | 17,516 | $ | 18,622 | ||||||||||
| Provision for loan losses |
2,424 | 8,148 | 419 | 2,665 | 851 | |||||||||||||||
| Charge offs: |
||||||||||||||||||||
| One-to-four family residential real estate loans |
(1,628 | ) | (225 | ) | (465 | ) | (340 | ) | (1,262 | ) | ||||||||||
| Multi-family mortgage loans |
(237 | ) | (1,838 | ) | (79 | ) | (290 | ) | (178 | ) | ||||||||||
| Nonresidential real estate loans |
— | (2,466 | ) | (23 | ) | (406 | ) | (2 | ) | |||||||||||
| Construction and land loans |
(378 | ) | — | — | — | (525 | ) | |||||||||||||
| Commercial loans |
— | (975 | ) | — | (199 | ) | — | |||||||||||||
| Commercial leases |
— | — | — | — | — | |||||||||||||||
| Consumer loans |
(16 | ) | — | (3 | ) | (6 | ) | (7 | ) | |||||||||||
| (2,259 | ) | (5,504 | ) | (570 | ) | (1,241 | ) | (1,974 | ) | |||||||||||
| Recoveries |
||||||||||||||||||||
| One-to-four family residential real estate loans |
2 | 59 | 2 | 7 | 1 | |||||||||||||||
| Multi-family mortgage loans |
89 | — | 1 | 2 | — | |||||||||||||||
| Nonresidential real estate loans |
58 | 1 | 596 | 20 | 16 | |||||||||||||||
| Construction and land loans |
— | 58 | — | — | — | |||||||||||||||
| Commercial loans |
10 | 1 | — | — | — | |||||||||||||||
| Commercial leases |
— | — | — | — | — | |||||||||||||||
| Consumer loans |
— | — | — | — | — | |||||||||||||||
| 159 | 119 | 599 | 29 | 17 | ||||||||||||||||
| Ending balance |
$ | 22,504 | $ | 22,180 | $ | 19,417 | $ | 18,969 | $ | 17,516 | ||||||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| SELECTED AVERAGE BALANCES: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Total average assets |
$ | 1,537,726 | $ | 1,559,424 | $ | 1,576,186 | $ | 1,574,013 | $ | 1,559,221 | ||||||||||
| Total average interest-earning assets |
1,419,673 | 1,446,151 | 1,468,442 | 1,452,835 | 1,437,236 | |||||||||||||||
| Average loans |
1,118,256 | 1,099,919 | 1,116,574 | 1,153,960 | 1,194,313 | |||||||||||||||
| Average securities |
118,913 | 80,837 | 78,751 | 88,017 | 96,778 | |||||||||||||||
| Average stock in FHLB |
15,711 | 15,598 | 15,598 | 15,598 | 15,598 | |||||||||||||||
| Average other interest-earning assets |
166,793 | 249,797 | 257,519 | 195,260 | 130,547 | |||||||||||||||
| Total average interest-bearing liabilities |
1,157,615 | 1,172,904 | 1,201,045 | 1,189,847 | 1,172,612 | |||||||||||||||
| Average interest-bearing deposits |
1,139,696 | 1,146,141 | 1,170,022 | 1,146,869 | 1,122,434 | |||||||||||||||
| Average borrowings |
17,919 | 26,763 | 31,023 | 42,978 | 50,178 | |||||||||||||||
| Average stockholders’ equity |
253,420 | 260,192 | 260,073 | 264,043 | 264,739 | |||||||||||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| SELECTED YIELDS AND COST OF FUNDS (1): | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Total average interest-earning assets |
4.38 | % | 4.24 | % | 4.29 | % | 4.54 | % | 4.84 | % | ||||||||||
| Average loans |
5.23 | 5.24 | 5.30 | 5.36 | 5.45 | |||||||||||||||
| Average securities |
2.80 | 3.73 | 4.08 | 4.15 | 4.22 | |||||||||||||||
| Average other interest-earning assets |
0.27 | 0.25 | 0.25 | 0.25 | 0.25 | |||||||||||||||
| Total average interest-bearing liabilities |
0.70 | 0.83 | 1.04 | 1.24 | 1.36 | |||||||||||||||
| Average interest-bearing deposits |
0.68 | 0.80 | 1.00 | 1.20 | 1.31 | |||||||||||||||
| Average borrowings |
2.17 | 1.94 | 2.29 | 2.27 | 2.42 | |||||||||||||||
| Net interest rate spread |
3.68 | 3.41 | 3.25 | 3.30 | 3.48 | |||||||||||||||
| Net interest margin |
3.81 | 3.57 | 3.45 | 3.53 | 3.73 | |||||||||||||||
|
|
||||||||||||||||||||
| (1) | Annualized |
Page 5
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
| 2011 | 2010 | |||||||||||||||||||
| CAPITAL RATIOS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| BankFinancial Corporation: |
||||||||||||||||||||
| Equity to total assets (end of period) |
14.70 | % | 16.55 | % | 16.53 | % | 16.57 | % | 16.92 | % | ||||||||||
| Tangible equity to tangible total assets (end of period) |
12.98 | 14.74 | 15.01 | 15.15 | 15.40 | |||||||||||||||
| Risk-based total capital ratio |
17.03 | 21.51 | 21.71 | 21.44 | 21.10 | |||||||||||||||
| Risk-based tier 1 capital ratio |
16.06 | 20.33 | 20.54 | 20.31 | 20.00 | |||||||||||||||
| Tier 1 leverage ratio |
13.00 | 14.73 | 15.01 | 15.16 | 15.41 | |||||||||||||||
| BankFinancial FSB: |
||||||||||||||||||||
| Risk-based total capital ratio |
14.63 | 18.38 | 18.56 | 18.06 | 17.41 | |||||||||||||||
| Risk-based tier 1 capital ratio |
13.65 | 17.20 | 17.39 | 16.94 | 16.32 | |||||||||||||||
| Tier 1 leverage ratio |
11.05 | 12.48 | 12.70 | 12.74 | 12.67 | |||||||||||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| COMMON STOCK AND DIVIDENDS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Stock Prices: |
||||||||||||||||||||
| Close |
$ | 9.19 | $ | 9.75 | $ | 9.17 | $ | 8.31 | $ | 9.17 | ||||||||||
| High |
10.10 | 9.90 | 9.38 | 9.99 | 10.16 | |||||||||||||||
| Low |
8.42 | 9.06 | 8.12 | 8.28 | 9.01 | |||||||||||||||
| Book value per share |
$ | 11.90 | $ | 12.02 | $ | 12.32 | $ | 12.32 | $ | 12.31 | ||||||||||
| Tangible book value per share |
$ | 10.59 | $ | 10.82 | $ | 11.11 | $ | 11.08 | $ | 11.08 | ||||||||||
| Cash dividends declared and paid on common stock |
$ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.07 | ||||||||||
| Stock repurchases |
$ | — | $ | — | $ | — | $ | 3,124 | $ | — | ||||||||||
| Stock repurchases – shares |
— | — | — | 356,411 | — | |||||||||||||||
|
|
||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| EARNINGS PER SHARE COMPUTATIONS: | IQ | IVQ | IIIQ | IIQ | IQ | |||||||||||||||
| Net income (loss) |
$ | (777 | ) | $ | (5,472 | ) | $ | 737 | $ | (288 | ) | $ | 716 | |||||||
| Average common shares outstanding |
21,072,966 | 21,062,368 | 21,059,966 | 21,301,212 | 21,416,377 | |||||||||||||||
| Less: Unearned ESOP shares |
(1,374,576 | ) | (1,399,056 | ) | (1,423,724 | ) | (1,457,047 | ) | (1,488,018 | ) | ||||||||||
| Unvested restricted stock shares |
(8,667 | ) | (89,131 | ) | (106,850 | ) | (106,850 | ) | (108,650 | ) | ||||||||||
| Weighted average common shares outstanding |
19,689,723 | 19,574,181 | 19,529,392 | 19,737,315 | 19,819,709 | |||||||||||||||
| Plus: Dilutive common shares equivalents |
— | — | 57,542 | — | — | |||||||||||||||
| Weighted average dilutive common shares outstanding |
19,689,723 | 19,574,181 | 19,586,934 | 19,737,315 | 19,819,709 | |||||||||||||||
| Number of anti-dilutive stock options excluded from the diluted earnings per share calculation |
2,287,553 | 2,287,553 | 2,298,603 | 2,320,803 | 2,322,603 | |||||||||||||||
| Weighted average exercise price of anti-dilutive options |
$ | 16.52 | $ | 16.52 | $ | 16.51 | $ | 16.51 | $ | 16.51 | ||||||||||
| Basic earnings (loss) per common share |
$ | (0.04 | ) | $ | (0.28 | ) | $ | 0.04 | $ | (0.01 | ) | $ | 0.04 | |||||||
| Diluted earnings (loss) per common share |
$ | (0.04 | ) | $ | (0.28 | ) | $ | 0.04 | $ | (0.01 | ) | $ | 0.04 | |||||||
|
|
||||||||||||||||||||
Page 6
BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
BankFinancial Corporation, a Maryland corporation (“the Company”) utilizes a number of different financial measures, both GAAP and non-GAAP, in making operating, budgeting and planning decisions for future periods. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States, or GAAP. The Company believes that the use of the non-GAAP financial measures described below provides the Board of Directors and management, and may provide some investors, with a more complete understanding of the Company’s operating results and trends, and facilitate comparisons to historical and peer performance. The Company’s non-GAAP financial measures should be considered supplemental in nature and should not be considered in isolation, or as superior to or a substitute for, financial measures that are prepared in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may differ from similar non-GAAP financial measures that are used by other companies, thus limiting their usefulness as a comparative tool.
These measures include core return on assets, core return on equity, core dilutive earnings (loss) per share, core operating expense to average total assets, and core efficiency ratio. Management also believes that by excluding equity-based compensation expense, the amortization of intangibles expenses and acquisition expenses from other noninterest income and expense, these ratios and earnings (loss) per share better reflect our core operating performance.
Page 7
BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands; except per share) – (Unaudited)
| FOR THE QUARTERS ENDED MARCH 31, 2011 AND 2010 |
||||||||
| Three months
ended March 31, |
||||||||
| 2011 | 2010 | |||||||
| Core operating income: (loss) |
||||||||
| Net (income) loss |
$ | (777 | ) | $ | 716 | |||
| Adjustments: |
||||||||
| Equity-based compensation |
140 | 632 | ||||||
| Amortization of intangibles |
382 | 405 | ||||||
| Acquisition expenses |
1,531 | — | ||||||
| Tax effect on adjustments assuming 39.745% tax rate |
(816 | ) | (412 | ) | ||||
| Core operating income |
$ | 460 | $ | 1,341 | ||||
| Return on assets (ratio of net income (loss) to average total assets) (1) |
(0.20 | )% | 0.18 | % | ||||
| Core return on assets (ratio of core operating income to average total assets) (1) |
0.12 | % | 0.34 | % | ||||
| Return on equity (ratio of net income (loss) to average equity) (1) |
(1.23 | )% | 1.08 | % | ||||
| Core return on equity (ratio of core operating income to average equity)(1) |
0.73 | % | 2.03 | % | ||||
| Diluted earnings (loss) per common share |
$ | (0.04 | ) | $ | 0.04 | |||
| Core dilutive earnings per common share |
$ | 0.02 | $ | 0.07 | ||||
| Core operating expenses: |
||||||||
| Noninterest expenses |
$ | 14,255 | $ | 12,678 | ||||
| Adjustments: |
||||||||
| Equity-based compensation |
(140 | ) | (632 | ) | ||||
| Amortization of intangibles |
(382 | ) | (405 | ) | ||||
| Acquisition expenses |
(1,531 | ) | — | |||||
| Core operating expenses |
$ | 12,202 | $ | 11,641 | ||||
| Noninterest expense to average total assets (1) |
3.71 | % | 3.25 | % | ||||
| Core operating expense to average total assets (1) |
3.17 | % | 2.99 | % | ||||
| Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income) |
95.52 | % | 86.42 | % | ||||
| Core efficiency ratio (ratio of core operating expense to net interest income plus core noninterest income) |
81.77 | % | 79.35 | % | ||||
| (1) | Annualized for the three-month periods. |
Page 8
BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands; except per share) – (Unaudited)
FOR THE LATEST FIVE QUARTERS
| 2011 | 2010 | |||||||||||||||||||
| IQ | IVQ | IIIQ | IIQ | IQ | ||||||||||||||||
| Core operating income (loss) |
||||||||||||||||||||
| Net income (loss) |
$ | (777 | ) | $ | (5,472 | ) | $ | 737 | $ | (288 | ) | $ | 716 | |||||||
| Adjustments: |
||||||||||||||||||||
| Equity-based compensation |
140 | 735 | 688 | 595 | 632 | |||||||||||||||
| Amortization of intangibles |
382 | 392 | 399 | 399 | 405 | |||||||||||||||
| Acquisition expenses |
1,531 | 81 | — | — | — | |||||||||||||||
| Tax effect on adjustments assuming 39.745% tax rate |
(816 | ) | (480 | ) | (432 | ) | (395 | ) | (412 | ) | ||||||||||
| Core operating income (loss) |
$ | 460 | $ | (4,744 | ) | $ | 1,392 | $ | 311 | $ | 1,341 | |||||||||
| Return on assets (ratio of net income (loss) to average total assets) (1) |
(0.20 | )% | (1.41 | )% | 0.19 | % | (0.07 | )% | 0.18 | % | ||||||||||
| Core return on assets (ratio of core operating income (loss) to average total assets) (1) |
0.12 | % | (1.22 | )% | 0.35 | % | 0.08 | % | 0.34 | % | ||||||||||
| Return on equity (ratio of net income (loss) to average equity)(1) |
(1.23 | )% | (8.41 | )% | 1.13 | % | (0.44 | )% | 1.08 | % | ||||||||||
| Core return on equity (ratio of core operating income (loss) to average equity) (1) |
0.73 | % | (7.29 | )% | 2.14 | % | 0.47 | % | 2.03 | % | ||||||||||
| Diluted earnings (loss) per common share |
$ | (0.04 | ) | $ | (0.28 | ) | $ | 0.04 | $ | (0.01 | ) | $ | 0.04 | |||||||
| Core diluted earnings (loss) per common share |
$ | 0.02 | $ | (0.24 | ) | $ | 0.07 | $ | 0.02 | $ | 0.07 | |||||||||
| Core operating expense: |
||||||||||||||||||||
| Noninterest expense |
$ | 14,255 | $ | 15,611 | $ | 13,190 | $ | 12,370 | $ | 12,678 | ||||||||||
| Adjustments: |
||||||||||||||||||||
| Equity-based compensation |
(140 | ) | (735 | ) | (688 | ) | (595 | ) | (632 | ) | ||||||||||
| Amortization of intangibles |
(382 | ) | (392 | ) | (399 | ) | (399 | ) | (405 | ) | ||||||||||
| Acquisition costs |
(1,531 | ) | (81 | ) | — | — | — | |||||||||||||
| Core operating expense |
$ | 12,202 | $ | 14,403 | $ | 12,103 | $ | 11,376 | $ | 11,641 | ||||||||||
| Noninterest expense to average total assets (1) |
3.71 | % | 4.00 | % | 3.35 | % | 3.14 | % | 3.25 | % | ||||||||||
| Core operating expense to average total assets (1) |
3.17 | % | 3.69 | % | 3.07 | % | 2.89 | % | 2.99 | % | ||||||||||
| Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income) |
95.52 | % | 104.71 | % | 89.65 | % | 84.81 | % | 86.42 | % | ||||||||||
| Core efficiency ratio (ratio of core operating expense to net interest income plus core noninterest income) |
81.77 | % | 96.61 | % | 82.27 | % | 77.99 | % | 79.35 | % | ||||||||||
| (1) | Annualized for the three-month periods. |
Page 9