BFIN2013.09.30 8K


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): October 30, 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
(Address of Principal Executive Offices)
60527
(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 third quarter 2013 results in a conference call and webcast for stockholders and analysts on Friday, November 1, 2013 at 9:30 a.m. Chicago, Illinois Time.
The conference call may be accessed by calling (877) 703-6109 using participant passcode 66046156. The conference call will be simultaneously webcast at www.bankfinancial.com, under Investor Relations.
Item 8.01.
Other Events
On October 30, 2013, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 and issued the Quarterly Financial and Statistical Supplement for the latest five quarters. The press release also reported earnings for the three and nine months ended September 30, 2013. 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 October 30, 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:
October 30, 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 October 30, 2013
99.2    Quarterly Financial and Statistical Supplement



BFIN2013.11.04 exhibit99.1 PR


Exhibit 99.1

 
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the Third Quarter 2013 and
Will Host Conference Call and Webcast on November 1, 2013
Burr Ridge, Illinois – (October 30, 2013) BankFinancial Corporation (Nasdaq – BFIN) filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 and Quarterly Financial and Statistical Supplement on Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”) today.
BankFinancial reported net income of $1.0 million, or $0.05 per common share, for the three months ended September 30, 2013, compared to a loss of $5.2 million, or $0.26 per common share, for the three months ended September 30, 2012. BankFinancial also reported net income of $1.8 million, or $0.09 per common share, for the nine months ended September 30, 2013, compared to a loss of $2.1 million, or $0.11 per common share, for the nine months ended September 30, 2012. At September 30, 2013, BankFinancial had total assets of $1.442 billion, total loans of $1.035 billion, total deposits of $1.250 billion and stockholders' equity of $174 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, at the “Investor Relations” page, and through the EDGAR database on the SEC's website, www.sec.gov. The Quarterly Financial and Statistical Supplement includes comparative GAAP and non-GAAP performance data and financial measures for the most recent five quarters.
BankFinancial's management will review third quarter 2013 results in a conference call and webcast for stockholders and analysts on Friday, November 1, 2013 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (877) 703-6109 using participant passcode 66046156. The conference call will be simultaneously webcast at www.bankfinancial.com, “Investor Relations” page. For those persons unable to participate in the conference call, the webcast will be archived through 11:59 p.m. Chicago Time on Friday, November 15, 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. Additional information may be found at the company’s web site, www.bankfinancial.com.
This release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. A variety of factors could cause BankFinancial's actual results to differ from those expected at the time of this release. For a discussion of some of the factors that may cause actual results to differ from expectations, please refer to BankFinancial's most recent Annual Report on Form 10-K as filed with the SEC. Investors are urged to review all information contained in these reports, including the risk factors discussed therein. Copies of these filings are available at no cost on the SEC's web site at www.sec.gov or on BankFinancial's web site at www.bankfinancial.com. Forward looking statements speak only as of the date they are made, and we do not undertake to update them to reflect changes.
For Further Information Contact:
 
 
Shareholder, Analyst and Investor Inquiries:
 
Media Inquiries:
       Elizabeth A. Doolan
       Senior Vice President – Finance
       BankFinancial Corporation
       Telephone: 630-242-7151
 
Gregg T. Adams
Executive Vice President – Marketing & Sales
BankFinancial F.S.B.
Telephone: 630-242-7234


BFIN-2013.09.30-EX99.2 Supplement

Exhibit 99.2



BANKFINANCIAL CORPORATION
THIRD QUARTER 2013
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)


 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income (loss) to average total assets) (1)
0.29
%
 
0.02
%
 
0.19
%
 
(6.66
)%
 
(1.39
)%
Return on equity (ratio of net income (loss) to average equity) (1)
2.38

 
0.17

 
1.55

 
(50.32
)
 
(10.20
)
Net interest rate spread (1)
3.21

 
3.25

 
3.39

 
3.51

 
3.69

Net interest margin (1)
3.26

 
3.31

 
3.45

 
3.58

 
3.76

Efficiency ratio, less goodwill impairment
95.28

 
97.81

 
90.40

 
104.78

 
105.04

Noninterest expense to average total assets, less goodwill impairment (1)
3.38

 
3.46

 
3.61

 
4.05

 
4.26

Average interest–earning assets to average interest–bearing liabilities
121.95

 
121.24

 
120.81

 
123.20

 
123.54

Number of full service offices
20

 
20

 
20

 
20

 
20

Employees (full time equivalents)
308

 
308

 
347

 
352

 
347

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
18,068

 
$
18,303

 
$
17,742

 
$
20,361

 
$
19,619

Interest-bearing deposits in other financial institutions
225,410

 
293,790

 
293,386

 
255,403

 
217,110

Securities, at fair value
83,409

 
53,014

 
61,273

 
77,832

 
81,748

Loans held for sale
15

 
276

 
55

 
2,166

 
551

Loans receivable, net
1,035,331

 
1,012,316

 
1,004,404

 
1,030,465

 
1,080,489

Other real estate owned, net
5,403

 
6,262

 
8,088

 
10,358

 
14,994

Stock in Federal Home Loan Bank, at cost
6,068

 
6,068

 
7,566

 
8,412

 
9,067

Premises and equipment, net
36,154

 
36,830

 
37,530

 
38,251

 
38,555

Intangible assets
2,583

 
2,732

 
2,882

 
3,038

 
3,195

Bank owned life insurance
21,881

 
21,797

 
21,715

 
21,645

 
21,562

FDIC prepaid expense

 

 
2,188

 
2,658

 
3,118

Income tax receivable

 

 

 
461

 
461

Other assets
7,626

 
9,744

 
9,306

 
10,142

 
9,403

Total assets
$
1,441,948

 
$
1,461,132

 
$
1,466,135

 
$
1,481,192

 
$
1,499,872

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,249,833

 
$
1,262,096

 
$
1,271,550

 
$
1,282,351

 
$
1,278,196

Borrowings
2,883

 
2,940

 
2,740

 
5,567

 
6,946

Other liabilities
14,921

 
22,867

 
18,206

 
20,384

 
16,733

Total liabilities
1,267,637

 
1,287,903

 
1,292,496

 
1,308,302

 
1,301,875

Stockholders’ equity
174,311

 
173,229

 
173,639

 
172,890

 
197,997

Total liabilities and stockholders’ equity
$
1,441,948

 
$
1,461,132

 
$
1,466,135

 
$
1,481,192

 
$
1,499,872

(1)Annualized


Page 2

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
12,107

 
$
12,276

 
$
12,713

 
$
13,801

 
$
14,468

Total interest expense
882

 
935

 
994

 
1,059

 
1,036

Net interest income before provision
11,225

 
11,341

 
11,719

 
12,742

 
13,432

Provision (recovery) for loan losses
(437
)
 
206

 
722

 
24,328

 
4,453

Net interest income
11,662

 
11,135

 
10,997

 
(11,586
)
 
8,979

Noninterest income
1,539

 
1,509

 
2,866

 
1,771

 
1,831

Noninterest expense
12,162

 
12,568

 
13,185

 
15,207

 
16,032

Income (loss) before income tax
1,039

 
76

 
678

 
(25,022
)
 
(5,222
)
Income tax expense (benefit)

 

 

 

 

Net income (loss)
$
1,039

 
$
76

 
$
678

 
$
(25,022
)
 
$
(5,222
)
Basic earnings (loss) per common share
$
0.05

 
$

 
$
0.03

 
$
(1.25
)
 
$
(0.26
)
Diluted earnings (loss) per common share
$
0.05

 
$

 
$
0.03

 
$
(1.25
)
 
$
(0.26
)
 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
520

 
$
509

 
$
499

 
$
550

 
$
548

Other fee income
373

 
410

 
375

 
380

 
374

Insurance commissions and annuities income
106

 
86

 
109

 
151

 
125

Gain (loss) on sales of loans, net
32

 
(4
)
 
1,417

 
246

 
210

Gain (loss) on disposition of premises and equipment

 

 

 
8

 
(7
)
Loan servicing fees
112

 
114

 
123

 
115

 
124

Amortization of servicing assets
(49
)
 
(85
)
 
(59
)
 
(68
)
 
(61
)
Recovery (impairment) of servicing assets
6

 
9

 
26

 
(17
)
 
6

Earnings on bank owned life insurance
84

 
82

 
70

 
83

 
109

Trust income
172

 
183

 
181

 
188

 
171

Other
183

 
205

 
125

 
135

 
232

Total noninterest income
$
1,539

 
$
1,509

 
$
2,866

 
$
1,771

 
$
1,831

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
6,143

 
$
6,686

 
$
6,752

 
$
6,278

 
$
6,353

Office occupancy and equipment
1,797

 
1,805

 
1,948

 
2,019

 
1,904

Advertising and public relations
195

 
268

 
146

 
258

 
145

Information technology
817

 
816

 
749

 
813

 
880

Supplies, telephone, and postage
382

 
403

 
461

 
413

 
372

Amortization of intangibles
149

 
150

 
156

 
156

 
156

Nonperforming asset management
682

 
655

 
694

 
1,126

 
1,728

Loss (gain) on sales of other real estate owned
64

 
49

 
69

 
379

 
(42
)
Valuation adjustments of other real estate owned
241

 
141

 
89

 
1,783

 
2,352

Operations of other real estate owned
171

 
232

 
353

 
344

 
432

FDIC insurance premiums
476

 
477

 
492

 
480

 
642

Other
1,045

 
886

 
1,276

 
1,158

 
1,110

Total noninterest expense
$
12,162

 
$
12,568

 
$
13,185

 
$
15,207

 
$
16,032

 
 
 
 

Page 3

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
204,205

 
$
200,181

 
$
209,540

 
$
218,596

 
$
238,810

Multi–family mortgage loans
375,786

 
353,924

 
338,502

 
352,019

 
374,164

Nonresidential real estate loans
246,524

 
255,429

 
261,207

 
264,672

 
288,976

Construction and land loans
6,429

 
7,152

 
6,933

 
8,552

 
13,774

Commercial loans
52,978

 
51,701

 
55,362

 
61,388

 
61,053

Commercial leases
161,822

 
157,606

 
147,168

 
139,783

 
121,200

Consumer loans
2,561

 
2,622

 
2,414

 
2,745

 
2,273

 
1,050,305

 
1,028,615

 
1,021,126

 
1,047,755

 
1,100,250

Net deferred loan origination costs
902

 
798

 
731

 
745

 
827

Allowance for loan losses
(15,876
)
 
(17,097
)
 
(17,453
)
 
(18,035
)
 
(20,588
)
Loans, net
$
1,035,331

 
$
1,012,316

 
$
1,004,404

 
$
1,030,465

 
$
1,080,489

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
12,974

 
$
3,698

 
$
4,601

 
$
3,864

 
$
3,785

Multi–family mortgage loans
47,850

 
30,325

 
7,108

 
3,453

 
6,843

Nonresidential real estate loans
3,461

 
5,150

 
9,298

 
10,464

 
1,253

Construction and land loans
2,265

 
366

 
55

 

 
18

Commercial loans
44,897

 
43,745

 
45,822

 
42,352

 
37,898

Commercial leases
27,519

 
30,854

 
30,047

 
37,893

 
20,748

Consumer loans
970

 
1,090

 
874

 
1,262

 
1,253

 
$
139,936

 
$
115,228

 
$
97,805

 
$
99,288

 
$
71,798

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
9,147

 
$
11,072

 
$
13,365

 
$
14,102

 
$
13,409

Multi–family mortgage loans
22,936

 
15,988

 
20,485

 
19,366

 
20,384

Nonresidential real estate loans
14,252

 
10,691

 
12,318

 
20,874

 
5,808

Construction and land loans
2,626

 
140

 
892

 
1,435

 
78

Commercial loans
43,847

 
46,861

 
51,984

 
40,864

 
42,200

Commercial leases
23,376

 
20,422

 
24,685

 
17,194

 
20,909

Consumer loans
1,036

 
913

 
886

 
1,024

 
970

 
$
117,220

 
$
106,087

 
$
124,615

 
$
114,859

 
$
103,758

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2)
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
1,688

 
$
1,761

 
$
1,362

 
$
2,873

 
$
2,446

Multi–family mortgage loans
13,285

 
6,346

 
4,025

 
7,291

 
2,747

Nonresidential real estate loans
9,894

 
5,210

 
4,913

 
10,930

 
1,661

Construction and land loans
2,553

 
90

 
842

 
1,345

 
34

Commercial loans
3,914

 
2,807

 
6,480

 
7,720

 
7,150

Commercial leases

 

 

 
32

 
54

Consumer loans

 

 
2

 
9

 
6

 
$
31,334

 
$
16,214

 
$
17,624

 
$
30,200

 
$
14,098

(1) Loan originations include draws on revolving lines of credit and exclude loan renewals.
(2) Loan payments and payoffs exclude loan renewals.

Page 4

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
5,398

 
$
5,399

 
$
5,988

 
$
7,299

 
$
11,334

Multi–family mortgage loans
11,913

 
12,204

 
10,822

 
3,517

 
11,501

Nonresidential real estate loans
5,335

 
7,037

 
6,182

 
8,985

 
25,541

Construction and land loans
1,018

 
1,601

 
1,575

 
2,210

 
3,584

Commercial loans
272

 
689

 
883

 
256

 
747

Commercial leases

 

 

 

 
68

Consumer loans
2

 
1

 
11

 

 
6

Nonaccrual loans
23,938

 
26,931

 
25,461

 
22,267

 
52,781

 
 
 
 
 
 
 
 
 
 
Loans held for sale
15

 
15

 
15

 
1,752

 

 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
808

 
1,316

 
1,515

 
1,760

 
2,420

Multi–family real estate
195

 

 

 
720

 
1,985

Nonresidential real estate
1,047

 
1,757

 
2,896

 
3,504

 
4,244

Land
919

 
933

 
1,144

 
1,323

 
1,761

Other real estate owned
2,969

 
4,006

 
5,555

 
7,307

 
10,410

Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)
26,922

 
30,952

 
31,031

 
31,326

 
63,191

 
 
 
 
 
 
 
 
 
 
Purchased impaired loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
405

 
$
396

 
$
388

 
$
380

 
$
2,125

Multi–family mortgage loans

 

 

 

 
1,528

Nonresidential real estate loans
1,611

 
1,607

 
2,554

 
2,568

 
2,610

Construction and land loans

 
997

 
1,021

 
1,021

 
1,634

Commercial loans
22

 
21

 
21

 
20

 
357

Purchased impaired loans
2,038

 
3,021

 
3,984

 
3,989

 
8,254

Purchased other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
201

 
179

 
205

 
320

 
320

Nonresidential real estate
372

 
372

 
372

 
462

 
577

Land
1,861

 
1,705

 
1,956

 
2,269

 
3,687

Purchased other real estate owned
2,434

 
2,256

 
2,533

 
3,051

 
4,584

Purchased impaired loans and OREO
4,472

 
5,277

 
6,517

 
7,040

 
12,838

Nonperforming assets
$
31,394

 
$
36,229

 
$
37,548

 
$
38,366

 
$
76,029

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
2.18
%
 
2.48
%
 
2.56
%
 
2.59
%
 
5.07
%
Nonperforming assets to total assets (1)
1.87

 
2.12

 
2.12

 
2.11

 
4.21

Nonaccrual loans to total loans
2.47

 
2.91

 
2.89

 
2.67

 
5.55

Nonaccrual loans to total loans (1)
2.28

 
2.62

 
2.49

 
2.29

 
4.80

Allowance for loan losses to nonperforming loans
61.08

 
57.05

 
59.24

 
64.39

 
33.73

Allowance for loan losses to nonperforming loans(1)
66.28

 
63.45

 
68.51

 
75.09

 
39.01

(1)
Asset quality ratios exclude purchased impaired loans and acquired other real estate owned resulting from the Downers Grove National Bank merger.


Page 5

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
 
 
 
30 – 59 days past due
$
1,706

 
$
2,001

 
$
4,539

 
$
8,100

 
$
3,810

60 – 89 days past due
1,268

 
268

 
425

 
2,652

 
230

Matured Loans
2,740

 
1,839

 
2,670

 
3,550

 
7,801

 
$
5,714

 
$
4,108

 
$
7,634

 
$
14,302

 
$
11,841

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
17,097

 
$
17,453

 
$
18,035

 
$
20,588

 
$
30,878

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(528
)
 
(176
)
 
(369
)
 
(7,958
)
 
(3,145
)
Multi–family mortgage loans
(902
)
 
(374
)
 
(236
)
 
(4,355
)
 
(2,159
)
Nonresidential real estate loans
(138
)
 
(153
)
 
(79
)
 
(10,097
)
 
(5,435
)
Construction and land loans
(16
)
 

 
(927
)
 
(3,273
)
 
(806
)
Commercial loans
(131
)
 
(213
)
 
(19
)
 
(1,255
)
 
(3,536
)
Commercial leases

 

 

 
(53
)
 
(68
)
Consumer loans
(38
)
 
(12
)
 

 
(8
)
 
(72
)
 
(1,753
)
 
(928
)
 
(1,630
)
 
(26,999
)
 
(15,221
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
108

 
85

 
242

 
41

 
7

Multi–family mortgage loans
3

 
159

 
57

 
48

 
11

Nonresidential real estate loans
329

 
103

 
19

 
6

 
7

Construction and land loans
193

 
1

 
2

 
2

 
6

Commercial loans
335

 
16

 
5

 
16

 
421

Commercial leases

 

 

 

 

Consumer loans
1

 
2

 
1

 
5

 
26

 
969

 
366

 
326

 
118

 
478

Net charge–offs
(784
)
 
(562
)
 
(1,304
)
 
(26,881
)
 
(14,743
)
Provision for (recovery of) loan losses
(437
)
 
206

 
722

 
24,328

 
4,453

Ending balance
$
15,876

 
$
17,097

 
$
17,453

 
$
18,035

 
$
20,588

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
1.51
%
 
1.66
%
 
1.71
%
 
1.72
%
 
1.87
%
Net charge–off ratio (1)
0.31

 
0.22

 
0.51

 
9.97

 
5.24

(1)
Annualized


Page 6

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
133,094

 
$
137,146

 
$
131,856

 
$
134,597

 
$
134,474

Savings deposits
146,685

 
147,758

 
148,184

 
144,726

 
143,212

Money market accounts
341,175

 
340,243

 
345,591

 
349,092

 
346,989

Interest–bearing NOW accounts
349,622

 
349,942

 
348,059

 
348,683

 
340,425

Certificates of deposits
279,257

 
287,007

 
297,860

 
305,253

 
313,096

 
$
1,249,833

 
$
1,262,096

 
$
1,271,550

 
$
1,282,351

 
$
1,278,196

SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,440,561

 
$
1,453,413

 
$
1,462,119

 
$
1,503,759

 
$
1,504,438

Total average interest–earning assets
1,364,625

 
1,373,855

 
1,379,156

 
1,416,629

 
1,419,829

Average loans
1,019,402

 
1,014,591

 
1,028,907

 
1,078,708

 
1,125,600

Average securities
68,109

 
57,022

 
73,284

 
80,485

 
74,260

Average stock in FHLB
6,068

 
6,809

 
8,026

 
8,761

 
9,614

Average other interest–earning assets
271,046

 
295,433

 
268,939

 
248,675

 
210,355

Total average interest–bearing liabilities
1,118,967

 
1,133,159

 
1,141,625

 
1,149,888

 
1,149,304

Average interest–bearing deposits
1,116,154

 
1,130,294

 
1,138,438

 
1,143,586

 
1,141,855

Average borrowings
2,813

 
2,865

 
3,187

 
6,302

 
7,449

Average stockholders’ equity
174,790

 
174,643

 
174,766

 
198,908

 
204,857

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.52
%
 
3.58
%
 
3.74
%
 
3.88
%
 
4.05
%
Average loans
4.55

 
4.69

 
4.84

 
4.91

 
4.94

Average securities
1.40

 
1.54

 
1.39

 
1.55

 
1.83

Average other interest–earning assets
0.27

 
0.27

 
0.27

 
0.41

 
0.26

Total average interest–bearing liabilities
0.31

 
0.33

 
0.35

 
0.26

 
0.36

Average interest–bearing deposits
0.31

 
0.33

 
0.35

 
0.36

 
0.35

Average borrowings
0.28

 
0.28

 
1.02

 
1.52

 
1.39

Net interest rate spread
3.21

 
3.25

 
3.39

 
3.51

 
3.69

Net interest margin
3.26

 
3.31

 
3.45

 
3.58

 
3.76

(1)     Annualized

Page 7

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
12.09
%
 
11.86
%
 
11.84
%
 
11.67
%
 
13.20
%
Tangible equity to tangible total assets (end of period)
11.93

 
11.69

 
11.67

 
11.49

 
13.02

Risk–based total capital ratio
18.15

 
18.38

 
18.59

 
18.01

 
19.53

Risk–based tier 1 capital ratio
16.90

 
17.12

 
17.33

 
16.75

 
18.27

Tier 1 leverage ratio
11.91

 
11.66

 
11.62

 
11.43

 
12.95

Tier 1 capital
$
171,269

 
$
169,823

 
$
169,763

 
$
168,734

 
$
193,517

BankFinancial FSB
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
15.58
%
 
15.74
%
 
15.84
%
 
15.32
%
 
16.96
%
Risk–based tier 1 capital ratio
14.33

 
14.48

 
14.59

 
14.07

 
15.70

Tier 1 leverage ratio
10.10

 
9.86

 
9.77

 
9.60

 
11.13

Tier 1 capital
$
145,203

 
$
143,589

 
$
142,861

 
$
141,629

 
$
166,248

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
8.84

 
$
8.50

 
$
8.09

 
$
7.42

 
$
8.79

High
9.40

 
8.71

 
8.40

 
8.85

 
9.24

Low
8.15

 
7.19

 
7.19

 
6.62

 
7.31

Book value per share
$
8.26

 
$
8.21

 
$
8.24

 
$
8.20

 
$
9.40

Tangible book value per share
$
8.14

 
$
8.08

 
$
8.10

 
$
8.06

 
$
9.24

Cash dividends declared on common stock
$

 
$
0.02

 
$

 
$

 
$
0.01

Stock repurchases
$

 
$

 
$

 
$

 
$

Stock repurchases – shares

 

 

 

 

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income (loss)
$
1,039

 
$
76

 
$
678

 
$
(25,022
)
 
$
(5,222
)
Average common shares outstanding
21,101,966

 
21,088,263

 
21,072,966

 
21,072,966

 
21,072,966

Less: Unearned ESOP shares
(1,028,158
)
 
(1,084,709
)
 
(1,108,938
)
 
(1,133,374
)
 
(1,157,974
)
Unvested restricted stock shares
(25,750
)
 
(13,797
)
 

 

 

Weighted average common shares outstanding
20,048,058


19,989,757

 
19,964,028

 
19,939,592

 
19,914,992

Plus: Dilutive common shares equivalents
6,034

 
556

 

 

 

Weighted average dilutive common shares outstanding
20,054,092

 
19,990,313

 
19,964,028

 
19,939,592

 
19,914,992

Number of anti–dilutive stock options excluded from the diluted earnings per share calculation

 

 

 

 
141,000

Weighted average exercise price of anti–dilutive options
$

 
$

 
$

 
$

 
$
17.21

Basic earnings (loss) per common share
$
0.05

 
$

 
$
0.03

 
$
(1.25
)
 
$
(0.26
)
Diluted earnings (loss) per common share
$
0.05

 
$

 
$
0.03

 
$
(1.25
)
 
$
(0.26
)


Page 8


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 gain on sale of owner-occupied and investor-owned one-to-four family residential loans that we designated as held for sale from noninterest income, and other real estate owned related income and expense items and nonperforming asset management expenses from noninterest expense, these measures better reflect our core operating performance.



Page 9

BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share) - (Unaudited)

 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
Income (loss) before income taxes
$
1,039

 
$
(5,222
)
 
$
1,793

 
$
(2,087
)
Provision for (recovery of) loan losses
(437
)
 
4,453

 
491

 
7,194

 
602

 
(769
)
 
2,284

 
5,107

Adjustments:
 
 
 
 
 
 
 
Gain on sale of owner-occupied and investor-owned one-to-four family residential loans designated as held for sale

 

 
(1,340
)
 

Nonperforming asset management
682

 
1,728

 
2,031

 
4,085

Loss (gain) on sale of other real estate owned
64

 
(42
)
 
182

 
(126
)
Valuation adjustments of other real estate owned
241

 
2,352

 
471

 
3,777

Operations of other real estate owned
171

 
432

 
756

 
1,334

Adjustments
1,158

 
4,470

 
2,100

 
9,070

Pre–tax pre–provision earnings from core operations
$
1,760

 
$
3,701

 
$
4,384

 
$
14,177

 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.49
%
 
0.98
%
 
0.40
%
 
1.24
%

(1)
Annualized


Page 10

BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share) - (Unaudited)

FOR THE LATEST FIVE QUARTERS
 
2013
 
2012
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
1,039

 
$
76

 
$
678

 
$
(25,022
)
 
$
(5,222
)
Provision for (recovery of) loan losses
(437
)
 
206

 
722

 
24,328

 
4,453

 
602

 
282

 
1,400

 
(694
)
 
(769
)
Adjustments:
 
 
 
 
 
 
 
 
 
Gain on sale of owner-occupied and investor-owned one-to-four family residential loans designated as held for sale

 
(40
)
 
(1,300
)
 

 

Nonperforming asset management
682

 
655

 
694

 
1,126

 
1,728

Loss (gain) on sale of other real estate owned
64

 
49

 
69

 
379

 
(42
)
Valuation adjustments of other real estate owned
241

 
141

 
89

 
1,783

 
2,352

Operations of other real estate owned
171

 
232

 
353

 
344

 
432

 
1,158

 
1,037

 
(95
)
 
3,632

 
4,470

Pre–tax pre–provision earnings from core operations
$
1,760

 
$
1,319

 
$
1,305

 
$
2,938

 
$
3,701

 
 
 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.49
%
 
0.36
%
 
0.36
%
 
0.78
%
 
0.98
%

(1)
Annualized


Page 11