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): February 1, 2013
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):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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 fourth quarter and full year 2012 results in a conference call and webcast for stockholders and analysts on Tuesday, February 5, 2013 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (800) 591-6942 and using participant passcode 22981731. The conference call will be simultaneously webcast at www.bankfinancial.com, under Stockholder Information.
Item 8.01. | Other Events |
On February 1, 2013, the Company issued a press release announcing certain asset resolution actions and the results for the year ended December 31, 2012 and issued the Fourth Quarter 2012 Quarterly Financial and Statistical Supplement for the latest five quarters. The press release also reported earnings for the year ended December 31, 2012. 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 February 1, 2013 | ||
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: February 1, 2013 | 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 February 1, 2013 | ||
99.2 | Quarterly Financial and Statistical Supplement | ||
Exhibit 99.1
FOR IMMEDIATE RELEASE
BANKFINANCIAL CORPORATION ANNOUNCES ADDITIONAL ASSET RESOLUTION ACTIONS AND FOURTH QUARTER 2012 FINANCIAL RESULTS
Burr Ridge, Illinois - February 1, 2013 (GLOBE NEWSWIRE) -- BankFinancial Corporation (BFIN) (the “Company”) today announced that it took additional actions in the fourth quarter of 2012 in furtherance of its plan to materially reduce future nonperforming asset expenses and accelerate the return to the Company's historical asset quality levels. The actions supplemented the Company's previously announced completion of two bulk sales of non-performing assets with a carrying value of $22.7 million.
The actions included the designation of additional loans with a carrying value of $7.5 million as “held for sale” in preparation for a bulk sale, the restructuring of $7.1 million of certain performing classified loans to enable the basis for their classification to be resolved in 2013, and a reduction in the carrying values of certain non-performing assets to levels designed to facilitate or accelerate resolution.
As a result of these actions, the two completed bulk sales and ordinary course of business classifications, resolutions and dispositions that occurred in the fourth quarter of 2012:
• | The Company's nonaccrual loans (excluding the loans that were designated as held for sale) totaled $26.3 million, or 2.51% of total loans, at December 31, 2012, compared to $76.2 million, or 6.05% of total loans, at December 31, 2011. Included in total non-performing loans are purchased impaired loans acquired in the Company's acquisition of Downers Grove National Bank in March, 2011; purchased impaired loans totaled $4.0 million at December 31, 2012, compared to $14.6 million at December 31, 2011. |
• | The Company's non-performing assets totaled $38.4 million, or 2.59% of total assets, at December 31, 2012, compared to $98.6 million, or 6.31% of total assets, at December 31, 2011. Included in total non-performing assets are other real estate owned and certain loans held for sale. Other real estate owned totaled $10.4 million at December 31, 2012, compared to $22.5 million at December 31, 2011. |
The pre-tax charges that the Company recorded in connection with these actions, combined with the $11.5 million pre-tax charge that the Company recorded in connection with the completed bulk loan sales, substantially contributed to the recording of a pre-tax net operating loss of $25.0 million for the fourth quarter ending December 31, 2012, and a pre-tax net operating loss of $27.1 million of the year ended December 31, 2012. At December 31, 2012, the Company's total risk-based capital ratio was 18.01 percent, its Tier 1 risk-based capital ratio was 16.75 percent, and its Tier 1 leverage ratio was 11.43 percent.
As previously disclosed, the non-performing loans and assets in the closed bulk sales involved multifamily and commercial real estate assets. The remaining element of the bulk sale plan involved the designation of certain owner-occupied and investor-owned 1-4 family loans as held for sale. The designation resulted in a $5.9 million pre-tax charge against the provision for loan losses for the quarter ended December 31, 2012. The loans designated as held for sale generally involved properties that exhibited significant declines in collateral valuations and/or presented limited resolution options. The Company is currently pursuing loan sale alternatives that are expected to result in the disposition of these assets in the first or second quarter of 2013.
The split-note restructurings involved four separate borrowers. The restructurings were conducted pursuant to applicable published regulatory and accounting guidance. The loans had an aggregate carrying value of $7.1 million prior to the completion of the restructurings. At the conclusion of the restructurings, $5.2 million remained on accrual status due to these actions and are expected to be eligible for favorable risk-rating classification in 2013 after a period of sustained performance. The remaining $1.9 million was charged against the provision for loan losses for the quarter ended December 31, 2012.
The Company also recorded a pre-tax charge of $6.0 million against the provision for loan losses with respect to certain purchased impaired loans and other impaired loans, and a $1.8 million valuation adjustment of certain other
real estate owned. These charges are expected to better position these assets for resolution, and were primarily based on updated appraisal and market data, decisions to shorten expected disposition periods or lower sales prices, and in the case of certain loans, decisions to terminate discussions with borrowers and institute legal action.
“These actions and the bulk sales that we have already completed have enabled us to enter 2013 with significantly improved asset quality metrics that are more consistent with our historical asset quality levels,” said F. Morgan Gasior, Chairman and CEO. “As a result, we can return our focus in 2013 to more normalized operations, with an emphasis on diversified and measured loan growth, improving non-interest income, implementing additional expense control measures and taking other steps that we believe should enhance shareholder value.”
A 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 fourth quarter and full year 2012 results in a conference call and webcast for stockholders and analysts on Tuesday, February 5, 2013 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (800) 591-6942 and using participant passcode 22981731. 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 11:59 p.m. Chicago, Illinois Time on March 5, 2013 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.
Caution About Forward-Looking Statements
This release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. BankFinancial intends these statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to significant uncertainties. Because of these uncertainties, 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
FOURTH QUARTER 2012
QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT
FOR THE LATEST FIVE QUARTERS
Note: Certain reclassifications have been made in the prior period’s financial statements and reflected in the Selected Quarterly Financial and Statistical Data tables to conform to the current period’s presentation.
The information and statistical data contained herein have been prepared by BankFinancial Corporation and have been derived or calculated from selected quarterly and period–end historical financial statements prepared in accordance with accounting principles generally accepted in the United States. BankFinancial Corporation is under no obligation to update, keep current, or continue to provide the information contained herein. This information is provided solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or establish any business relationships with BankFinancial Corporation or its subsidiary.
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2012 | 2011 | ||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | |||||||||||||||
PERFORMANCE MEASUREMENTS | |||||||||||||||||||
Return on assets (ratio of net income (loss) to average total assets) (1) | (6.66 | )% | (1.39 | )% | 0.21 | % | 0.61 | % | (11.65 | )% | |||||||||
Return on equity (ratio of net income (loss) to average equity) (1) | (50.32 | ) | (10.20 | ) | 1.56 | 4.61 | (75.38 | ) | |||||||||||
Net interest rate spread (1) | 3.51 | 3.69 | 4.04 | 4.18 | 4.19 | ||||||||||||||
Net interest margin (1) | 3.58 | 3.76 | 4.11 | 4.26 | 4.28 | ||||||||||||||
Efficiency ratio, less goodwill impairment | 104.78 | 105.04 | 87.07 | 78.00 | 90.76 | ||||||||||||||
Noninterest expense to average total assets, less goodwill impairment (1) | 4.05 | 4.26 | 3.68 | 3.49 | 4.04 | ||||||||||||||
Average interest–earning assets to average interest–bearing liabilities | 123.20 | 123.54 | 123.50 | 122.46 | 122.86 | ||||||||||||||
Number of full service offices | 20 | 20 | 20 | 20 | 20 | ||||||||||||||
Employees (full time equivalents) | 352 | 347 | 350 | 353 | 357 | ||||||||||||||
SUMMARY STATEMENT OF FINANCIAL CONDITION | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from other financial institutions | $ | 20,361 | $ | 19,619 | $ | 17,679 | $ | 24,037 | $ | 24,247 | |||||||||
Interest-bearing deposits in other financial institutions | 255,403 | 217,110 | 203,028 | 154,043 | 96,457 | ||||||||||||||
Securities, at fair value | 77,832 | 81,748 | 75,040 | 81,241 | 92,832 | ||||||||||||||
Loans held-for-sale | 2,166 | 551 | 505 | 521 | 1,918 | ||||||||||||||
Loans receivable, net | 1,030,465 | 1,080,489 | 1,118,928 | 1,177,719 | 1,227,391 | ||||||||||||||
Other real estate owned, net | 10,358 | 14,994 | 17,251 | 20,189 | 22,480 | ||||||||||||||
Stock in Federal Home Loan Bank, at cost | 8,412 | 9,067 | 10,160 | 11,336 | 16,346 | ||||||||||||||
Premises and equipment, net | 38,251 | 38,555 | 38,934 | 39,044 | 39,155 | ||||||||||||||
Intangible assets | 3,038 | 3,195 | 3,351 | 3,508 | 3,671 | ||||||||||||||
Bank owned life insurance | 21,645 | 21,562 | 21,453 | 21,333 | 21,207 | ||||||||||||||
FDIC prepaid expense | 2,658 | 3,118 | 3,738 | 4,027 | 4,351 | ||||||||||||||
Income tax receivable | 461 | 461 | 694 | 1,353 | 1,809 | ||||||||||||||
Other assets | 10,142 | 9,403 | 11,433 | 10,786 | 11,711 | ||||||||||||||
Total assets | $ | 1,481,192 | $ | 1,499,872 | $ | 1,522,194 | $ | 1,549,137 | $ | 1,563,575 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Deposits | $ | 1,282,351 | $ | 1,278,196 | $ | 1,289,467 | $ | 1,320,580 | $ | 1,332,552 | |||||||||
Borrowings | 5,567 | 6,946 | 10,081 | 9,995 | 9,322 | ||||||||||||||
Other liabilities | 20,384 | 16,733 | 19,703 | 16,451 | 21,844 | ||||||||||||||
Total liabilities | 1,308,302 | 1,301,875 | 1,319,251 | 1,347,026 | 1,363,718 | ||||||||||||||
Stockholders’ equity | 172,890 | 197,997 | 202,943 | 202,111 | 199,857 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,481,192 | $ | 1,499,872 | $ | 1,522,194 | $ | 1,549,137 | $ | 1,563,575 | |||||||||
(1)Annualized
Page 2
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2012 | 2011 | ||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | |||||||||||||||
SUMMARY STATEMENT OF OPERATIONS | |||||||||||||||||||
Total interest income | $ | 13,801 | $ | 14,468 | $ | 15,824 | $ | 16,634 | $ | 17,370 | |||||||||
Total interest expense | 1,059 | 1,036 | 1,112 | 1,240 | 1,380 | ||||||||||||||
Net interest income before provision | 12,742 | 13,432 | 14,712 | 15,394 | 15,990 | ||||||||||||||
Provision for loan losses | 24,328 | 4,453 | 1,745 | 996 | 9,740 | ||||||||||||||
Net interest income | (11,586 | ) | 8,979 | 12,967 | 14,398 | 6,250 | |||||||||||||
Noninterest income | 1,771 | 1,831 | 1,418 | 1,832 | 2,004 | ||||||||||||||
Noninterest expense | 15,207 | 16,032 | 14,044 | 13,436 | 40,193 | ||||||||||||||
Income (loss) before income tax | (25,022 | ) | (5,222 | ) | 341 | 2,794 | (31,939 | ) | |||||||||||
Income tax expense (benefit) | — | — | (457 | ) | 457 | 15,110 | |||||||||||||
Net income (loss) | $ | (25,022 | ) | $ | (5,222 | ) | $ | 798 | $ | 2,337 | $ | (47,049 | ) | ||||||
Basic earnings (loss) per common share | $ | (1.25 | ) | $ | (0.26 | ) | $ | 0.04 | $ | 0.12 | $ | (2.38 | ) | ||||||
Diluted earnings (loss) per common share | $ | (1.25 | ) | $ | (0.26 | ) | $ | 0.04 | $ | 0.12 | $ | (2.38 | ) | ||||||
NONINTEREST INCOME AND EXPENSE | |||||||||||||||||||
Noninterest Income | |||||||||||||||||||
Deposit service charges and fees | $ | 550 | $ | 548 | $ | 521 | $ | 557 | $ | 657 | |||||||||
Other fee income | 380 | 374 | 383 | 385 | 430 | ||||||||||||||
Insurance commissions and annuities income | 151 | 125 | 112 | 122 | 189 | ||||||||||||||
Gain on sales of loans, net | 246 | 210 | 118 | 267 | 199 | ||||||||||||||
Gain (loss) on disposition of premises and equipment | 8 | (7 | ) | (157 | ) | — | — | ||||||||||||
Loan servicing fees | 115 | 124 | 119 | 128 | 131 | ||||||||||||||
Amortization of servicing assets | (68 | ) | (61 | ) | (67 | ) | (69 | ) | (74 | ) | |||||||||
Recovery (impairment) of servicing assets | (17 | ) | 6 | (31 | ) | (13 | ) | 17 | |||||||||||
Earnings on bank owned life insurance | 83 | 109 | 120 | 126 | 141 | ||||||||||||||
Trust income | 188 | 171 | 190 | 184 | 186 | ||||||||||||||
Other | 135 | 232 | 110 | 145 | 128 | ||||||||||||||
Total noninterest income | $ | 1,771 | $ | 1,831 | $ | 1,418 | $ | 1,832 | $ | 2,004 | |||||||||
Noninterest Expense | |||||||||||||||||||
Compensation and benefits | $ | 6,298 | $ | 6,333 | $ | 6,461 | $ | 6,659 | $ | 6,078 | |||||||||
Office occupancy and equipment | 1,715 | 1,627 | 1,755 | 1,743 | 1,870 | ||||||||||||||
Advertising and public relations | 242 | 136 | 217 | 94 | 60 | ||||||||||||||
Information technology | 1,104 | 1,127 | 1,146 | 1,261 | 1,058 | ||||||||||||||
Supplies, telephone, and postage | 433 | 416 | 408 | 430 | 434 | ||||||||||||||
Amortization of intangibles | 157 | 156 | 157 | 163 | 367 | ||||||||||||||
Nonperforming asset management | 1,126 | 1,728 | 1,117 | 1,240 | 1,430 | ||||||||||||||
Loss (gain) on sales of other real estate owned | 379 | (42 | ) | 54 | (138 | ) | 113 | ||||||||||||
Valuation adjustments of other real estate owned | 1,783 | 2,352 | 1,036 | 389 | 2,482 | ||||||||||||||
Operations of other real estate owned | 344 | 432 | 601 | 301 | 844 | ||||||||||||||
FDIC insurance premiums | 480 | 642 | 309 | 348 | 334 | ||||||||||||||
Goodwill impairment | — | — | — | — | 23,862 | ||||||||||||||
Other | 1,146 | 1,125 | 783 | 946 | 1,261 | ||||||||||||||
Total noninterest expense | $ | 15,207 | $ | 16,032 | $ | 14,044 | $ | 13,436 | $ | 40,193 | |||||||||
Page 3
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
Year Ended December 31, | |||||||
2012 | 2011 | ||||||
SUMMARY STATEMENT OF OPERATIONS | |||||||
Total interest income | $ | 60,727 | $ | 69,708 | |||
Total interest expense | 4,447 | 6,915 | |||||
Net interest income before provision | 56,280 | 62,793 | |||||
Provision for loan losses | 31,522 | 22,723 | |||||
Net interest income | 24,758 | 40,070 | |||||
Noninterest income | 6,852 | 7,317 | |||||
Noninterest expense | 58,719 | 83,708 | |||||
Loss before income tax | (27,109 | ) | (36,321 | ) | |||
Income tax expense | — | 12,375 | |||||
Net loss | $ | (27,109 | ) | $ | (48,696 | ) | |
Basic loss per common share | $ | (1.36 | ) | $ | (2.46 | ) | |
Diluted loss per common share | $ | (1.36 | ) | $ | (2.46 | ) | |
NONINTEREST INCOME AND EXPENSE | |||||||
Noninterest Income | |||||||
Deposit service charges and fees | $ | 2,176 | $ | 2,667 | |||
Other fee income | 1,522 | 1,598 | |||||
Insurance commissions and annuities income | 510 | 659 | |||||
Gain on sales of loans, net | 841 | 340 | |||||
Loss on disposition of premises and equipment | (156 | ) | (19 | ) | |||
Loan servicing fees | 486 | 538 | |||||
Amortization of servicing assets | (265 | ) | (252 | ) | |||
Impairment of servicing assets | (55 | ) | (15 | ) | |||
Earnings on bank owned life insurance | 438 | 626 | |||||
Trust income | 733 | 676 | |||||
Other | 622 | 499 | |||||
Total noninterest income | $ | 6,852 | $ | 7,317 | |||
Noninterest Expense | |||||||
Compensation and benefits | $ | 25,751 | $ | 26,027 | |||
Office occupancy and equipment | 6,840 | 7,319 | |||||
Advertising and public relations | 689 | 890 | |||||
Information technology | 4,638 | 4,182 | |||||
Supplies, telephone, and postage | 1,687 | 1,698 | |||||
Amortization of intangibles | 633 | 1,689 | |||||
Nonperforming asset management | 5,211 | 4,431 | |||||
Loss on sales of other real estate owned | 253 | 15 | |||||
Valuation adjustments of other real estate owned | 5,560 | 3,970 | |||||
Operations of other real estate owned | 1,678 | 2,350 | |||||
FDIC insurance premiums | 1,779 | 1,441 | |||||
Acquisition costs | — | 1,761 | |||||
Goodwill impairment | — | 23,862 | |||||
Other | 4,000 | 4,073 | |||||
Total noninterest expense | $ | 58,719 | $ | 83,708 | |||
Page 4
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2012 | 2011 | ||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | |||||||||||||||
DEPOSITS | |||||||||||||||||||
Noninterest–bearing demand | $ | 134,597 | $ | 134,474 | $ | 140,801 | $ | 144,182 | $ | 142,084 | |||||||||
Savings deposits | 144,726 | 143,212 | 144,875 | 147,706 | 144,515 | ||||||||||||||
Money market accounts | 349,092 | 346,989 | 347,889 | 343,826 | 345,011 | ||||||||||||||
Interest–bearing NOW accounts | 348,683 | 340,425 | 336,629 | 338,269 | 336,531 | ||||||||||||||
Certificates of deposits | 305,253 | 313,096 | 319,273 | 346,597 | 364,411 | ||||||||||||||
Deposits | $ | 1,282,351 | $ | 1,278,196 | $ | 1,289,467 | $ | 1,320,580 | $ | 1,332,552 | |||||||||
LOANS | |||||||||||||||||||
One–to–four family residential real estate loans | $ | 218,596 | $ | 238,810 | $ | 252,034 | $ | 262,263 | $ | 272,032 | |||||||||
Multi–family mortgage loans | 352,019 | 374,164 | 390,112 | 410,341 | 423,615 | ||||||||||||||
Nonresidential real estate loans | 264,672 | 288,976 | 299,567 | 308,094 | 311,641 | ||||||||||||||
Construction and land loans | 8,552 | 13,774 | 15,391 | 19,283 | 19,852 | ||||||||||||||
Commercial loans | 61,388 | 61,053 | 68,510 | 81,998 | 93,932 | ||||||||||||||
Commercial leases | 139,783 | 121,200 | 121,356 | 124,319 | 134,990 | ||||||||||||||
Consumer loans | 2,745 | 2,273 | 2,055 | 2,211 | 2,147 | ||||||||||||||
Total loans | 1,047,755 | 1,100,250 | 1,149,025 | 1,208,509 | 1,258,209 | ||||||||||||||
Net deferred loan origination costs | 745 | 827 | 781 | 848 | 908 | ||||||||||||||
Allowance for loan losses | (18,035 | ) | (20,588 | ) | (30,878 | ) | (31,638 | ) | (31,726 | ) | |||||||||
Loans, net | $ | 1,030,465 | $ | 1,080,489 | $ | 1,118,928 | $ | 1,177,719 | $ | 1,227,391 | |||||||||
Page 5
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2012 | 2011 | |||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | ||||||||||||||||
CREDIT QUALITY: | ||||||||||||||||||||
Nonperforming Assets: | ||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
One–to–four family residential real estate loans | $ | 7,299 | $ | 11,334 | $ | 14,214 | $ | 11,602 | $ | 10,622 | ||||||||||
Multi–family mortgage loans | 3,517 | 11,501 | 12,640 | 13,264 | 14,807 | |||||||||||||||
Nonresidential real estate loans | 8,985 | 25,541 | 30,096 | 32,892 | 29,927 | |||||||||||||||
Construction and land loans | 2,210 | 3,584 | 4,005 | 3,263 | 3,246 | |||||||||||||||
Commercial loans | 256 | 747 | 3,533 | 3,527 | 2,920 | |||||||||||||||
Commercial leases | — | 68 | 159 | 22 | 22 | |||||||||||||||
Consumer loans | — | 6 | 13 | 8 | 3 | |||||||||||||||
Nonaccrual loans | 22,267 | 52,781 | 64,660 | 64,578 | 61,547 | |||||||||||||||
Loans held-for-sale | 1,752 | — | — | — | — | |||||||||||||||
Other real estate owned: | ||||||||||||||||||||
One–to–four family residential real estate loans | 1,760 | 2,420 | 3,365 | 4,251 | 5,328 | |||||||||||||||
Multi–family real estate | 720 | 1,985 | 2,645 | 3,005 | 3,655 | |||||||||||||||
Nonresidential real estate | 3,504 | 4,244 | 4,496 | 4,756 | 4,905 | |||||||||||||||
Land | 1,323 | 1,761 | 1,665 | 1,712 | 2,237 | |||||||||||||||
Other real estate owned | 7,307 | 10,410 | 12,171 | 13,724 | 16,125 | |||||||||||||||
Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned) | 31,326 | 63,191 | 76,831 | — | 78,302 | 77,672 | ||||||||||||||
Purchased impaired loans: | ||||||||||||||||||||
One–to–four family residential real estate loans | $ | 380 | $ | 2,125 | $ | 2,297 | $ | 3,670 | $ | 3,941 | ||||||||||
Multi–family mortgage loans | — | 1,528 | 1,491 | 1,454 | 1,418 | |||||||||||||||
Nonresidential real estate loans | 2,568 | 2,610 | 2,661 | 3,308 | 3,375 | |||||||||||||||
Construction and land loans | 1,021 | 1,634 | 2,324 | 4,859 | 4,788 | |||||||||||||||
Commercial loans | 20 | 357 | 677 | 841 | 1,078 | |||||||||||||||
Purchased impaired loans | 3,989 | 8,254 | 9,450 | 14,132 | 14,600 | |||||||||||||||
Purchased other real estate owned: | ||||||||||||||||||||
One–to–four family residential real estate | 320 | 320 | 535 | 721 | 327 | |||||||||||||||
Nonresidential real estate | 462 | 577 | 927 | 2,264 | 2,546 | |||||||||||||||
Land | 2,269 | 3,687 | 3,618 | 3,480 | 3,482 | |||||||||||||||
Purchased other real estate owned | 3,051 | 4,584 | 5,080 | 6,465 | 6,355 | |||||||||||||||
Purchased impaired loans and OREO | 7,040 | 12,838 | 14,530 | 20,597 | 20,955 | |||||||||||||||
Nonperforming assets | $ | 38,366 | $ | 76,029 | $ | 91,361 | $ | 98,899 | $ | 98,627 | ||||||||||
Asset Quality Ratios | ||||||||||||||||||||
Nonperforming assets to total assets | 2.59 | % | 5.07 | % | 6.00 | % | 6.38 | % | 6.31 | % | ||||||||||
Nonperforming assets to total assets (1) | 2.11 | 4.21 | 5.05 | 5.05 | 4.97 | |||||||||||||||
Nonaccrual loans to total loans | 2.51 | 5.55 | 6.45 | 6.51 | 6.05 | |||||||||||||||
Nonaccrual loans to total loans (1) | 2.13 | 4.80 | 5.63 | 5.34 | 4.89 | |||||||||||||||
Allowance for loan losses to nonaccrual loans | 64.39 | 33.73 | 41.67 | 40.20 | 41.66 | |||||||||||||||
Allowance for loan losses to nonaccrual loans (1) | 80.99 | 39.01 | 47.75 | 48.99 | 51.55 | |||||||||||||||
(1) | Asset quality ratios exclude purchased impaired loans and acquired other real estate owned resulting from the Downers Grove National Bank merger. |
Page 6
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2012 | 2011 | ||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | |||||||||||||||
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE | |||||||||||||||||||
30 – 59 days past due | $ | 8,100 | $ | 3,810 | $ | 1,448 | $ | 14,131 | $ | 11,305 | |||||||||
60 – 89 days past due | 2,652 | 230 | 108 | 157 | 2,410 | ||||||||||||||
Matured Loans | 3,550 | 7,801 | 2,553 | 10,008 | 15,582 | ||||||||||||||
$ | 14,302 | $ | 11,841 | $ | 4,109 | $ | 24,296 | $ | 29,297 | ||||||||||
ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||
Beginning balance | $ | 20,588 | $ | 30,878 | $ | 31,638 | $ | 31,726 | $ | 28,778 | |||||||||
Charge offs: | |||||||||||||||||||
One–to–four family residential real estate loans | (7,958 | ) | (3,145 | ) | (591 | ) | (672 | ) | (2,689 | ) | |||||||||
Multi–family mortgage loans | (4,355 | ) | (2,159 | ) | (135 | ) | (554 | ) | (1,893 | ) | |||||||||
Nonresidential real estate loans | (10,097 | ) | (5,435 | ) | (2,202 | ) | (433 | ) | (686 | ) | |||||||||
Construction and land loans | (3,273 | ) | (806 | ) | (185 | ) | (47 | ) | (249 | ) | |||||||||
Commercial loans | (1,255 | ) | (3,536 | ) | (31 | ) | (138 | ) | (1,352 | ) | |||||||||
Commercial leases | (53 | ) | (68 | ) | — | — | (72 | ) | |||||||||||
Consumer loans | (8 | ) | (72 | ) | (11 | ) | (12 | ) | (6 | ) | |||||||||
(26,999 | ) | (15,221 | ) | (3,155 | ) | (1,856 | ) | (6,947 | ) | ||||||||||
Recoveries: | |||||||||||||||||||
One–to–four family residential real estate loans | 41 | 7 | 74 | 111 | 11 | ||||||||||||||
Multi–family mortgage loans | 48 | 11 | 96 | 384 | 1 | ||||||||||||||
Nonresidential real estate loans | 6 | 7 | 284 | 31 | 5 | ||||||||||||||
Construction and land loans | 2 | 6 | 58 | 184 | — | ||||||||||||||
Commercial loans | 16 | 421 | 132 | 57 | 135 | ||||||||||||||
Commercial leases | — | — | — | — | — | ||||||||||||||
Consumer loans | 5 | 26 | 6 | 5 | 3 | ||||||||||||||
118 | 478 | 650 | 772 | 155 | |||||||||||||||
Net charge–offs | (26,881 | ) | (14,743 | ) | (2,505 | ) | (1,084 | ) | (6,792 | ) | |||||||||
Provision for loan losses | 24,328 | 4,453 | 1,745 | 996 | 9,740 | ||||||||||||||
Ending balance | $ | 18,035 | $ | 20,588 | $ | 30,878 | $ | 31,638 | $ | 31,726 | |||||||||
Allowance for loan losses to total loans | 1.72 | % | 1.87 | % | 2.69 | % | 2.62 | % | 2.52 | % | |||||||||
Net charge–off ratio (1) | 9.97 | 5.24 | 0.85 | 0.35 | 2.11 | ||||||||||||||
(1) | Annualized |
Page 7
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2012 | 2011 | ||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | |||||||||||||||
SELECTED AVERAGE BALANCES | |||||||||||||||||||
Total average assets | $ | 1,503,759 | $ | 1,504,438 | $ | 1,525,626 | $ | 1,541,815 | $ | 1,614,989 | |||||||||
Total average interest–earning assets | 1,416,629 | 1,419,829 | 1,440,147 | 1,454,117 | 1,483,656 | ||||||||||||||
Average loans | 1,078,708 | 1,125,600 | 1,184,803 | 1,236,234 | 1,285,153 | ||||||||||||||
Average securities | 80,485 | 74,260 | 77,077 | 88,448 | 95,120 | ||||||||||||||
Average stock in FHLB | 8,761 | 9,614 | 10,741 | 13,868 | 16,346 | ||||||||||||||
Average other interest–earning assets | 248,675 | 210,355 | 167,526 | 115,567 | 87,037 | ||||||||||||||
Total average interest–bearing liabilities | 1,149,888 | 1,149,304 | 1,166,111 | 1,187,446 | 1,207,554 | ||||||||||||||
Average interest–bearing deposits | 1,143,586 | 1,141,855 | 1,156,355 | 1,178,263 | 1,198,045 | ||||||||||||||
Average borrowings | 6,302 | 7,449 | 9,756 | 9,183 | 9,509 | ||||||||||||||
Average stockholders’ equity | 198,908 | 204,857 | 204,709 | 202,935 | 249,659 | ||||||||||||||
SELECTED YIELDS AND COST OF FUNDS (1): | |||||||||||||||||||
Total average interest–earning assets | 3.88 | % | 4.05 | % | 4.42 | % | 4.60 | % | 4.64 | % | |||||||||
Average loans | 4.91 | 4.94 | 5.20 | 5.24 | 5.18 | ||||||||||||||
Average securities | 1.55 | 1.83 | 2.02 | 2.01 | 2.12 | ||||||||||||||
Average other interest–earning assets | 0.41 | 0.26 | 0.28 | 0.25 | 0.27 | ||||||||||||||
Total average interest–bearing liabilities | 0.26 | 0.36 | 0.38 | 0.42 | 0.45 | ||||||||||||||
Average interest–bearing deposits | 0.36 | 0.35 | 0.38 | 0.41 | 0.45 | ||||||||||||||
Average borrowings | 1.52 | 1.39 | 1.15 | 1.14 | 1.21 | ||||||||||||||
Net interest rate spread | 3.51 | 3.69 | 4.04 | 4.18 | 4.19 | ||||||||||||||
Net interest margin | 3.58 | 3.76 | 4.11 | 4.26 | 4.28 | ||||||||||||||
Page 8
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2012 | 2011 | ||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | |||||||||||||||
CAPITAL RATIOS | |||||||||||||||||||
BankFinancial Corporation | |||||||||||||||||||
Equity to total assets (end of period) | 11.67 | % | 13.20 | % | 13.33 | % | 13.05 | % | 12.78 | % | |||||||||
Tangible equity to tangible total assets (end of period) | 11.49 | % | 13.02 | % | 13.14 | % | 12.85 | % | 12.58 | % | |||||||||
Risk–based total capital ratio | 18.01 | % | 19.53 | % | 19.16 | % | 17.93 | % | 17.02 | % | |||||||||
Risk–based tier 1 capital ratio | 16.75 | % | 18.27 | % | 17.90 | % | 16.67 | % | 15.76 | % | |||||||||
Tier 1 leverage ratio | 11.43 | % | 12.95 | % | 13.07 | % | 12.79 | % | 12.30 | % | |||||||||
Tier 1 capital | $ | 168,734 | $ | 193,517 | $ | 198,213 | $ | 197,319 | $ | 194,847 | |||||||||
BankFinancial FSB | |||||||||||||||||||
Risk–based total capital ratio | 15.32 | % | 16.96 | % | 16.67 | % | 15.56 | % | 14.72 | % | |||||||||
Risk–based tier 1 capital ratio | 14.07 | 15.70 | 15.40 | 14.29 | 13.45 | ||||||||||||||
Tier 1 leverage ratio | 9.60 | 11.13 | 11.25 | 10.97 | 10.48 | ||||||||||||||
Tier 1 capital | $ | 141,629 | $ | 166,248 | $ | 170,573 | $ | 169,242 | $ | 166,406 | |||||||||
COMMON STOCK AND DIVIDENDS | |||||||||||||||||||
Stock Prices: | |||||||||||||||||||
Close | 7.42 | 8.79 | 7.53 | 6.62 | 5.52 | ||||||||||||||
High | 8.85 | 9.24 | 7.56 | 7.05 | 8.89 | ||||||||||||||
Low | 6.62 | 7.31 | 5.66 | 5.25 | 5.26 | ||||||||||||||
Book value per share | 8.20 | 9.40 | 9.64 | 9.59 | 9.48 | ||||||||||||||
Tangible book value per share | 8.06 | 9.24 | 9.47 | 9.42 | 9.31 | ||||||||||||||
Cash dividends declared on common stock | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||||
Stock repurchases | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Stock repurchases – shares | — | — | — | — | — | ||||||||||||||
EARNINGS PER SHARE COMPUTATIONS | |||||||||||||||||||
Net income (loss) | $ | (25,022 | ) | $ | (5,222 | ) | $ | 798 | $ | 2,337 | $ | (47,049 | ) | ||||||
Average common shares outstanding | 21,072,966 | 21,072,966 | 21,072,966 | 21,072,966 | 21,072,966 | ||||||||||||||
Less: Unearned ESOP shares | (1,133,374 | ) | (1,157,974 | ) | (1,209,023 | ) | (1,233,359 | ) | (1,257,911 | ) | |||||||||
Unvested restricted stock shares | — | — | (3,524 | ) | (4,334 | ) | (7,866 | ) | |||||||||||
Weighted average common shares outstanding | 19,939,592 | 19,914,992 | 19,860,419 | 19,835,273 | 19,807,189 | ||||||||||||||
Plus: Dilutive common shares equivalents | — | — | — | 807 | — | ||||||||||||||
Weighted average dilutive common shares outstanding | 19,939,592 | 19,914,992 | 19,860,419 | 19,836,080 | 19,807,189 | ||||||||||||||
Number of anti–dilutive stock options excluded from the diluted earnings per share calculation | — | 141,000 | 1,881,053 | 2,055,553 | 2,075,553 | ||||||||||||||
Weighted average exercise price of anti–dilutive options | $ | — | $ | 17.21 | $ | 16.58 | $ | 16.53 | $ | 16.54 | |||||||||
Basic earnings (loss) per common share | $ | (1.25 | ) | $ | (0.26 | ) | $ | 0.04 | $ | 0.12 | $ | (2.38 | ) | ||||||
Diluted earnings (loss) per common share | $ | (1.25 | ) | $ | (0.26 | ) | $ | 0.04 | $ | 0.12 | $ | (2.38 | ) | ||||||
Page 9
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 pre–tax pre–provision earnings from core operations and pre–tax pre–provision earnings from core operations to average total assets. Management believes that by excluding other real estate owned related income and expense items, nonperforming asset management expenses, acquisition expenses and goodwill impairment from noninterest expense, these measures better reflect our core operating performance.
Page 10
BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share) - (Unaudited)
FOR THE THREE MONTHS AND YEAR PERIODS
ENDED DECEMBER 31, 2012 and 2011
Three months ended December 31, | Year ended December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Pre–tax pre–provision earnings from core operations | |||||||||||||||
Loss before income taxes | $ | (25,022 | ) | $ | (31,939 | ) | $ | (27,109 | ) | $ | (36,321 | ) | |||
Provision for loan losses | 24,328 | 9,740 | 31,522 | 22,723 | |||||||||||
(694 | ) | (22,199 | ) | 4,413 | (13,598 | ) | |||||||||
Adjustments: | |||||||||||||||
Nonperforming asset management | 1,126 | 1,430 | 5,211 | 4,431 | |||||||||||
Loss on sale of other real estate owned | 379 | 113 | 253 | 15 | |||||||||||
Valuation adjustments of other real estate owned | 1,783 | 2,482 | 5,560 | 3,970 | |||||||||||
Operations of other real estate owned | 344 | 844 | 1,678 | 2,350 | |||||||||||
Acquisition expenses | — | — | — | 1,761 | |||||||||||
Goodwill impairment | — | 23,862 | — | 23,862 | |||||||||||
Adjustments | 3,632 | 28,731 | 12,702 | 36,389 | |||||||||||
Pre–tax pre–provision earnings from core operations | $ | 2,938 | $ | 6,532 | $ | 17,115 | $ | 22,791 | |||||||
Pre–tax pre–provision earnings from core operations to average total assets (1) | 0.78 | % | 1.62 | % | 1.13 | % | 1.41 | % | |||||||
(1) | Annualized |
Page 11
BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share) - (Unaudited)
FOR THE LATEST FIVE QUARTERS
2012 | 2011 | ||||||||||||||||||
IVQ | IIIQ | IIQ | IQ | IVQ | |||||||||||||||
Pre–tax pre–provision earnings from core operations | |||||||||||||||||||
Income (loss) before income taxes | $ | (25,022 | ) | $ | (5,222 | ) | $ | 341 | $ | 2,794 | $ | (31,939 | ) | ||||||
Provision for loan losses | 24,328 | 4,453 | 1,745 | 996 | 9,740 | ||||||||||||||
(694 | ) | (769 | ) | 2,086 | 3,790 | (22,199 | ) | ||||||||||||
Adjustments: | |||||||||||||||||||
Nonperforming asset management | 1,126 | 1,728 | 1,117 | 1,240 | 1,430 | ||||||||||||||
Loss (gain) on sale of other real estate owned | 379 | (42 | ) | 54 | (138 | ) | 113 | ||||||||||||
Valuation adjustments of other real estate owned | 1,783 | 2,352 | 1,036 | 389 | 2,482 | ||||||||||||||
Operations of other real estate owned | 344 | 432 | 601 | 301 | 844 | ||||||||||||||
Goodwill impairment | — | — | — | — | 23,862 | ||||||||||||||
Adjustments | 3,632 | 4,470 | 2,808 | 1,792 | 28,731 | ||||||||||||||
Pre–tax pre–provision earnings from core operations | $ | 2,938 | $ | 3,701 | $ | 4,894 | $ | 5,582 | $ | 6,532 | |||||||||
Pre–tax pre–provision earnings from core operations to average total assets (1) | 0.78 | % | 0.98 | % | 1.28 | % | 1.45 | % | 1.62 | % | |||||||||
(1) | Annualized |
Page 12