BFIN2014.03.31 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): April 30, 2014
 
 
 
 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 first quarter 2014 results in a conference call and webcast for stockholders and analysts on Friday, May 2, 2014 at 9:30 a.m. Chicago, Illinois Time.
The conference call may be accessed by calling (800) 237-9752 using participant passcode 40643588. The conference call will be simultaneously webcast at www.bankfinancial.com, under Investor Relations.
Item 8.01.
Other Events
On April 30, 2014, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 and issued the Quarterly Financial and Statistical Supplement for the latest five quarters. The press release also reported earnings for the three months ended March 31, 2014. 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 April 30, 2014
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:
April 30, 2014
 
By:
/s/ F. Morgan Gasior
 
 
 
 
 
F. Morgan Gasior
 
 
 
 
 
Chairman of the Board, Chief Executive Officer and President







EXHIBIT INDEX


Exhibit No.    Description
99.1    Press Release dated April 30, 2014
99.2    Quarterly Financial and Statistical Supplement



BFIN2014.04.30 exhibit99.1 PR


Exhibit 99.1

 
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the First Quarter 2014 and
Will Host Conference Call and Webcast on May 2, 2014
Burr Ridge, Illinois – (April 30, 2014) BankFinancial Corporation (Nasdaq – BFIN) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 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 $942,000, or $0.05 per common share, for the three months ended March 31, 2014, compared to $678,000, or $0.03 per common share, for the three months ended March 31, 2013. At March 31, 2014, BankFinancial had total assets of $1.449 billion, total loans of $1.098 billion, total deposits of $1.253 billion and stockholders' equity of $177 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 first quarter 2014 results in a conference call and webcast for stockholders and analysts on Friday, May 2, 2014 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (800) 237-9752 using participant passcode 40643588. 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, May 16, 2014 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 19 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-2014.03.31 EX99.2 Supplement

Exhibit 99.2



BANKFINANCIAL CORPORATION
FIRST QUARTER 2014
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)


 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (1)
0.26
%
 
0.42
%
 
0.29
%
 
0.02
%
 
0.19
%
Return on equity (ratio of net income to average equity) (1)
2.12

 
3.43

 
2.38

 
0.17

 
1.55

Net interest rate spread (1)
3.30

 
3.25

 
3.21

 
3.25

 
3.39

Net interest margin (1)
3.34

 
3.31

 
3.26

 
3.31

 
3.45

Efficiency ratio
88.79

 
97.51

 
95.36

 
97.84

 
90.51

Noninterest expense to average total assets (1)
3.15

 
3.53

 
3.43

 
3.51

 
3.65

Average interest–earning assets to average interest–bearing liabilities
121.85

 
121.97

 
121.95

 
121.24

 
120.81

Number of full service offices
19

 
20

 
20

 
20

 
20

Employees (full time equivalents)
281

 
301

 
308

 
308

 
347

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
13,869

 
$
15,781

 
$
18,068

 
$
18,303

 
$
17,742

Interest-bearing deposits in other financial institutions
137,855

 
145,176

 
225,410

 
293,790

 
293,386

Securities, at fair value
115,977

 
110,907

 
83,409

 
53,014

 
61,273

Loans held for sale

 

 
15

 
276

 
55

Loans receivable, net
1,097,888

 
1,098,077

 
1,035,331

 
1,012,316

 
1,004,404

Other real estate owned, net
8,670

 
6,306

 
5,403

 
6,262

 
8,088

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

 
6,068

 
6,068

 
6,068

 
7,566

Premises and equipment, net
34,882

 
35,328

 
36,154

 
36,830

 
37,530

Intangible assets
2,284

 
2,433

 
2,583

 
2,732

 
2,882

Bank owned life insurance
22,022

 
21,958

 
21,881

 
21,797

 
21,715

FDIC prepaid expense

 

 

 

 
2,188

Other assets
9,027

 
11,560

 
7,626

 
9,744

 
9,306

Total assets
$
1,448,542

 
$
1,453,594

 
$
1,441,948

 
$
1,461,132

 
$
1,466,135

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,252,819

 
$
1,252,708

 
$
1,249,833

 
$
1,262,096

 
$
1,271,550

Borrowings
2,668

 
3,055

 
2,883

 
2,940

 
2,740

Other liabilities
16,191

 
22,204

 
14,921

 
22,867

 
18,206

Total liabilities
1,271,678

 
1,277,967

 
1,267,637

 
1,287,903

 
1,292,496

Stockholders’ equity
176,864

 
175,627

 
174,311

 
173,229

 
173,639

Total liabilities and stockholders’ equity
$
1,448,542

 
$
1,453,594

 
$
1,441,948

 
$
1,461,132

 
$
1,466,135

(1)Annualized


Page 2

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


 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
12,086

 
$
12,296

 
$
12,107

 
$
12,276

 
$
12,713

Total interest expense
812

 
842

 
882

 
935

 
994

Net interest income before provision
11,274

 
11,454

 
11,225

 
11,341

 
11,719

Provision for (recovery of) loan losses
476

 
(1,178
)
 
(437
)
 
206

 
722

Net interest income
10,798

 
12,632

 
11,662

 
11,135

 
10,997

Noninterest income
1,532

 
1,665

 
1,737

 
1,703

 
3,029

Noninterest expense
11,371

 
12,792

 
12,360

 
12,762

 
13,348

Income before income tax
959

 
1,505

 
1,039

 
76

 
678

Income tax expense
17

 

 

 

 

Net income
$
942

 
$
1,505

 
$
1,039

 
$
76

 
$
678

Basic earnings per common share
$
0.05

 
$
0.07

 
$
0.05

 
$

 
$
0.03

Diluted earnings per common share
$
0.05

 
$
0.07

 
$
0.05

 
$

 
$
0.03

 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
433

 
$
477

 
$
520

 
$
509

 
$
499

Other fee income
527

 
537

 
571

 
604

 
538

Insurance commissions and annuities income
87

 
173

 
106

 
86

 
109

Gain (loss) on sales of loans, net
24

 
24

 
32

 
(4
)
 
1,417

Loss on sale of securities
(7
)
 

 

 

 

Gain (loss) on disposition of premises and equipment
2

 
(43
)
 

 

 

Loan servicing fees
104

 
112

 
112

 
114

 
123

Amortization of servicing assets
(32
)
 
(40
)
 
(49
)
 
(85
)
 
(59
)
Recovery (impairment) of servicing assets
(4
)
 
24

 
6

 
9

 
26

Earnings on bank owned life insurance
64

 
77

 
84

 
82

 
70

Trust income
164

 
175

 
172

 
183

 
181

Other
170

 
149

 
183

 
205

 
125

Total noninterest income
$
1,532

 
$
1,665

 
$
1,737

 
$
1,703

 
$
3,029

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
5,958

 
$
6,614

 
$
6,143

 
$
6,686

 
$
6,752

Office occupancy and equipment
1,914

 
1,997

 
1,797

 
1,805

 
1,948

Advertising and public relations
162

 
316

 
195

 
268

 
146

Information technology
639

 
697

 
817

 
819

 
758

Supplies, telephone, and postage
391

 
463

 
382

 
400

 
452

Amortization of intangibles
149

 
150

 
149

 
150

 
156

Nonperforming asset management
104

 
607

 
682

 
655

 
694

Loss (gain) on sales of other real estate owned
6

 
(34
)
 
64

 
49

 
69

Valuation adjustments of other real estate owned
44

 
79

 
241

 
141

 
89

Operations of other real estate owned
207

 
159

 
171

 
232

 
353

FDIC insurance premiums
479

 
468

 
476

 
477

 
492

Other
1,318

 
1,276

 
1,243

 
1,080

 
1,439

Total noninterest expense
$
11,371

 
$
12,792

 
$
12,360

 
$
12,762

 
$
13,348

 
 
 
 

Page 3

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


 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
197,831

 
$
201,382

 
$
204,205

 
$
200,181

 
$
209,540

Multi–family mortgage loans
416,356

 
396,058

 
375,786

 
353,924

 
338,502

Nonresidential real estate loans
251,873

 
263,567

 
246,524

 
255,429

 
261,207

Construction and land loans
3,396

 
6,570

 
6,429

 
7,152

 
6,933

Commercial loans
53,661

 
54,255

 
52,978

 
51,701

 
55,362

Commercial leases
185,474

 
187,112

 
161,822

 
157,606

 
147,168

Consumer loans
2,476

 
2,317

 
2,561

 
2,622

 
2,414

 
1,111,067

 
1,111,261

 
1,050,305

 
1,028,615

 
1,021,126

Net deferred loan origination costs
1,002

 
970

 
902

 
798

 
731

Allowance for loan losses
(14,181
)
 
(14,154
)
 
(15,876
)
 
(17,097
)
 
(17,453
)
Loans, net
$
1,097,888

 
$
1,098,077

 
$
1,035,331

 
$
1,012,316

 
$
1,004,404

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
2,548

 
$
6,316

 
$
13,425

3,670,000

$
3,670

4,601,000

$
4,601

Multi–family mortgage loans
24,419

 
37,351

 
46,675

38,606,000

28,606

6,308,000

6,308

Nonresidential real estate loans
6,088

 
26,009

 
4,185

6,017,000

6,017

9,298,000

9,298

Construction and land loans

 
1,118

 
1,015

366,000

366

55,000

55

Commercial loans
49,659

 
56,222

 
44,811

43,735,000

43,735

45,719,000

45,719

Commercial leases
22,870

 
47,101

 
27,192

30,854,000

30,854

30,047,000

30,047

Consumer loans
870

 
962

 
970

1,090,000

1,090

874,000

874

 
$
106,454

 
$
175,079

 
$
138,273

 
$
114,338

 
$
96,902

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
5,811

 
$
8,749

 
$
9,012

 
$
10,934

 
$
13,146

Multi–family mortgage loans
6,539

 
13,966

 
23,678

 
16,035

 
19,683

Nonresidential real estate loans
12,663

 
9,673

 
14,042

 
9,853

 
12,163

Construction and land loans
791

 
979

 
1,376

 
140

 
742

Commercial loans
48,638

 
54,744

 
43,760

 
46,851

 
51,801

Commercial leases
26,097

 
19,480

 
23,402

 
20,448

 
24,711

Consumer loans
1,057

 
951

 
1,036

 
912

 
886

 
$
101,596

 
$
108,542

 
$
116,306

 
$
105,173

 
$
123,132

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2)
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
28

 
$
1,022

 
$
932

 
$
2,481

 
$
1,151

Multi–family mortgage loans
2,724

 
1,651

 
13,311

 
7,912

 
4,058

Nonresidential real estate loans
6,899

 
3,055

 
9,659

 
7,803

 
4,698

Construction and land loans
748

 
926

 
1,303

 
90

 
692

Commercial loans
4,441

 
6,262

 
4,079

 
3,366

 
6,829

Commercial leases
26

 
35

 
26

 
30

 
30

Consumer loans
2

 

 

 

 
2

 
$
14,868

 
$
12,951

 
$
29,310

 
$
21,682

 
$
17,460

(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)


 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
5,008

 
$
4,641

 
$
5,398

 
$
5,399

 
$
5,988

Multi–family mortgage loans
6,617

 
7,098

 
11,913

 
12,204

 
10,822

Nonresidential real estate loans
8,715

 
4,214

 
5,335

 
7,037

 
6,182

Construction and land loans
269

 
382

 
1,018

 
1,601

 
1,575

Commercial loans
77

 
77

 
272

 
689

 
883

Commercial leases
8

 

 

 

 

Consumer loans

 
12

 
2

 
1

 
11

Nonaccrual loans
20,694

 
16,424

 
23,938

 
26,931

 
25,461

 
 
 
 
 
 
 
 
 
 
Loans past due over 90 days, still accruing

 
228

 
965

 
234

 
243

Loans held for sale

 

 
15

 
15

 
15

 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
1,098

 
901

 
808

 
1,316

 
1,515

Multi–family real estate
3,220

 
1,921

 
195

 

 

Nonresidential real estate
2,086

 
1,181

 
1,047

 
1,757

 
2,896

Land
258

 
275

 
919

 
933

 
1,144

Other real estate owned
6,662

 
4,278

 
2,969

 
4,006

 
5,555

Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)
27,356

 
20,930

 
27,887

 
31,186

 
31,274

 
 
 
 
 
 
 
 
 
 
Purchased impaired loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
101

 
$
100

 
$
405

 
$
396

 
$
388

Nonresidential real estate loans
153

 
1,633

 
1,611

 
1,607

 
2,554

Construction and land loans

 

 

 
997

 
1,021

Commercial loans
23

 
23

 
22

 
21

 
21

Purchased impaired loans
277

 
1,756

 
2,038

 
3,021

 
3,984

Purchased other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
156

 
176

 
201

 
179

 
205

Nonresidential real estate

 

 
372

 
372

 
372

Land
1,852

 
1,852

 
1,861

 
1,705

 
1,956

Purchased other real estate owned
2,008

 
2,028

 
2,434

 
2,256

 
2,533

Purchased impaired loans and OREO
2,285

 
3,784

 
4,472

 
5,277

 
6,517

Nonperforming assets
$
29,641

 
$
24,714

 
$
32,359

 
$
36,463

 
$
37,791

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
2.05
%
 
1.70
%
 
2.24
%
 
2.50
%
 
2.58
%
Nonperforming assets to total assets (1)
1.89

 
1.44

 
1.93

 
2.13

 
2.13

Nonaccrual loans to total loans
1.89

 
1.66

 
2.57

 
2.94

 
2.91

Nonaccrual loans to total loans (1)
1.86

 
1.50

 
2.37

 
2.64

 
2.52

Allowance for loan losses to nonperforming loans
67.62

 
76.89

 
58.90

 
56.61

 
58.76

Allowance for loan losses to nonperforming loans(1)
68.53

 
85.00

 
63.71

 
62.90

 
67.86

(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)


 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
SUBSTANDARD PERFORMING LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
3,690

 
$
2,634

 
$
1,597

 
$
1,546

 
$
2,983

Multi–family mortgage loans
5,906

 
5,063

 
7,028

 
10,476

 
13,935

Nonresidential real estate loans
7,454

 
13,645

 
15,427

 
16,185

 
17,176

Construction and land loans
109

 
832

 
1,062

 
1,628

 
1,707

Commercial loans
952

 
977

 
1,061

 
1,083

 
1,817

Commercial leases
184

 
210

 

 

 

Consumer loans
1

 
1

 

 

 

 
$
18,296

 
$
23,362

 
$
26,175

 
$
30,918

 
$
37,618

 
 
 
 
 
 
 
 
 
 
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
30 – 59 days past due
$
4,131

 
$
5,574

 
$
1,706

 
$
2,001

 
$
4,539

60 – 89 days past due
1,277

 
1,535

 
1,268

 
268

 
425

Matured Loans
2,913

 
3,458

 
2,740

 
1,839

 
2,670

 
$
8,321

 
$
10,567

 
$
5,714

 
$
4,108

 
$
7,634

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
14,154

 
$
15,876

 
$
17,097

 
$
17,453

 
$
18,035

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(56
)
 
(432
)
 
(528
)
 
(176
)
 
(369
)
Multi–family mortgage loans
(90
)
 
(320
)
 
(902
)
 
(374
)
 
(236
)
Nonresidential real estate loans
(580
)
 
(207
)
 
(138
)
 
(153
)
 
(79
)
Construction and land loans

 

 
(16
)
 

 
(927
)
Commercial loans
(22
)
 
(62
)
 
(131
)
 
(213
)
 
(19
)
Consumer loans
(6
)
 
(5
)
 
(38
)
 
(12
)
 

 
(754
)
 
(1,026
)
 
(1,753
)
 
(928
)
 
(1,630
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
11

 
12

 
108

 
85

 
242

Multi–family mortgage loans
14

 
17

 
3

 
159

 
57

Nonresidential real estate loans
20

 
68

 
329

 
103

 
19

Construction and land loans
250

 
267

 
193

 
1

 
2

Commercial loans
8

 
114

 
335

 
16

 
5

Consumer loans
2

 
4

 
1

 
2

 
1

 
305

 
482

 
969

 
366

 
326

Net charge–offs
(449
)
 
(544
)
 
(784
)
 
(562
)
 
(1,304
)
Provision for (recovery of) loan losses
476

 
(1,178
)
 
(437
)
 
206

 
722

Ending balance
$
14,181

 
$
14,154

 
$
15,876

 
$
17,097

 
$
17,453

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
1.28
%
 
1.27
%
 
1.51
%
 
1.66
%
 
1.71
%
Net charge–off ratio (1)
0.16

 
0.20

 
0.31

 
0.22

 
0.51

(1)
Annualized


Page 6

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


 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
129,732

 
$
126,680

 
$
133,094

 
$
137,146

 
$
131,856

Savings deposits
156,174

 
149,602

 
146,685

 
147,758

 
148,184

Money market accounts
353,656

 
347,017

 
341,175

 
340,243

 
345,591

Interest–bearing NOW accounts
353,338

 
353,787

 
349,622

 
349,942

 
348,059

Certificates of deposits
259,919

 
275,622

 
279,257

 
287,007

 
297,860

 
$
1,252,819

 
$
1,252,708

 
$
1,249,833

 
$
1,262,096

 
$
1,271,550

SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,442,667

 
$
1,450,403

 
$
1,440,561

 
$
1,453,413

 
$
1,462,119

Total average interest–earning assets
1,367,225

 
1,374,544

 
1,364,625

 
1,373,855

 
1,379,156

Average loans
1,114,433

 
1,061,829

 
1,019,402

 
1,014,591

 
1,028,907

Average securities
115,089

 
92,223

 
68,109

 
57,022

 
73,284

Average stock in FHLB
6,068

 
6,068

 
6,068

 
6,809

 
8,026

Average other interest–earning assets
131,635

 
214,424

 
271,046

 
295,433

 
268,939

Total average interest–bearing liabilities
1,122,027

 
1,126,973

 
1,118,967

 
1,133,159

 
1,141,625

Average interest–bearing deposits
1,119,445

 
1,123,977

 
1,116,154

 
1,130,294

 
1,138,438

Average borrowings
2,582

 
2,996

 
2,813

 
2,865

 
3,187

Average stockholders’ equity
177,331

 
175,305

 
174,790

 
174,643

 
174,766

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.59
%
 
3.55
%
 
3.52
%
 
3.58
%
 
3.74
%
Average loans
4.26

 
4.44

 
4.55

 
4.69

 
4.84

Average securities
1.04

 
1.17

 
1.40

 
1.54

 
1.39

Average other interest–earning assets
0.27

 
0.26

 
0.27

 
0.27

 
0.27

Total average interest–bearing liabilities
0.29

 
0.30

 
0.31

 
0.33

 
0.35

Average interest–bearing deposits
0.29

 
0.30

 
0.31

 
0.33

 
0.35

Average borrowings
0.31

 
0.26

 
0.28

 
0.28

 
1.02

Net interest rate spread
3.30

 
3.25

 
3.21

 
3.25

 
3.39

Net interest margin
3.34

 
3.31

 
3.26

 
3.31

 
3.45

(1)     Annualized

Page 7

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


 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
12.21
%
 
12.08
%
 
12.09
%
 
11.86
%
 
11.84
%
Tangible equity to tangible total assets (end of period)
12.07

 
11.93

 
11.93

 
11.69

 
11.67

Risk–based total capital ratio
17.52

 
17.28

 
18.15

 
18.38

 
18.59

Risk–based tier 1 capital ratio
16.27

 
16.03

 
16.90

 
17.12

 
17.33

Tier 1 leverage ratio
12.05

 
11.92

 
11.91

 
11.66

 
11.62

Tier 1 capital
$
174,580

 
$
172,775

 
$
171,269

 
$
169,823

 
$
169,763

BankFinancial FSB
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
15.17
%
 
14.93
%
 
15.58
%
 
15.74
%
 
15.84
%
Risk–based tier 1 capital ratio
13.92

 
13.68

 
14.33

 
14.48

 
14.59

Tier 1 leverage ratio
10.31

 
10.16

 
10.10

 
9.86

 
9.77

Tier 1 capital
$
148,943

 
$
147,363

 
$
145,203

 
$
143,589

 
$
142,861

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
9.98

 
$
9.16

 
$
8.84

 
$
8.50

 
$
8.09

High
10.33

 
9.74

 
9.40

 
8.71

 
8.40

Low
9.06

 
8.70

 
8.15

 
7.25

 
7.19

Book value per share
$
8.38

 
$
8.32

 
$
8.26

 
$
8.21

 
$
8.24

Tangible book value per share
$
8.27

 
$
8.21

 
$
8.14

 
$
8.08

 
$
8.10

Cash dividends declared on common stock
$

 
$
0.02

 
$

 
$
0.02

 
$

Stock repurchases
$

 
$

 
$

 
$

 
$

Stock repurchases – shares

 

 

 

 

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income
$
942

 
$
1,505

 
$
1,039

 
$
76

 
$
678

Average common shares outstanding
21,101,966

 
21,101,966

 
21,101,966

 
21,088,263

 
21,072,966

Less: Unearned ESOP shares
(977,561
)
 
(1,002,041
)
 
(1,028,158
)
 
(1,084,709
)
 
(1,108,938
)
Unvested restricted stock shares
(25,750
)
 
(25,750
)
 
(25,750
)
 
(13,797
)
 

Weighted average common shares outstanding
20,098,655


20,074,175

 
20,048,058

 
19,989,757

 
19,964,028

Plus: Dilutive common shares equivalents
12,045

 
9,500

 
6,034

 
556

 

Weighted average dilutive common shares outstanding
20,110,700

 
20,083,675

 
20,054,092

 
19,990,313

 
19,964,028

Basic earnings (loss) per common share
$
0.05

 
$
0.08

 
$
0.05

 
$

 
$
0.03

Diluted earnings (loss) per common share
$
0.05

 
$
0.08

 
$
0.05

 
$

 
$
0.03



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)

 
 
 
 
 
 
 
 
FOR THE LATEST FIVE QUARTERS
 
2014
 
2013
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
959

 
$
1,505

 
$
1,039

 
$
76

 
$
678

Provision for (recovery of) loan losses
476

 
(1,178
)
 
(437
)
 
206

 
722

 
1,435

 
327

 
602

 
282

 
1,400

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
104

 
607

 
682

 
655

 
694

Loss (gain) on sale of other real estate owned
6

 
(34
)
 
64

 
49

 
69

Valuation adjustments of other real estate owned
44

 
79

 
241

 
141

 
89

Operations of other real estate owned
207

 
159

 
171

 
232

 
353

 
361

 
811

 
1,158

 
1,037

 
(95
)
Pre–tax pre–provision earnings from core operations
$
1,796

 
$
1,138

 
$
1,760

 
$
1,319

 
$
1,305

 
 
 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.50
%
 
0.31
%
 
0.49
%
 
0.36
%
 
0.36
%

(1)
Annualized


Page 10