BFIN-2014.12-8K Results
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): January 30, 2015
 





BANKFINANCIAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
 





 
 
 
 
 
 
Maryland
 
0-51331
 
75-3199276
(State or Other Jurisdiction
of Incorporation)
 
(Commission File No.)
 
(I.R.S. Employer
Identification No.)
 
 
 
 
15W060 North Frontage Road, Burr Ridge, Illinois
 
60527
(Address of Principal Executive Offices)
 
(Zip Code)

Registrant’s telephone number, including area code: (800) 894-6900

Not Applicable
(Former name or former address, if changed since last report)
 





Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Item 2.02    Results of Operations and Financial Condition
On January 30, 2015, the Company issued a press release announcing the results for the fourth quarter and year ended December 31, 2014 and issued the Fourth Quarter 2014 Quarterly Financial and Statistical Supplement for the latest five quarters. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.

Item 7.01.
Regulation FD Disclosure
The press release referenced in Item 2.02, above, included certain predictions as to the Company’s performance for the year ending December 31, 2014.

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 January 30, 2015
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
 
 
 
 
 
 
 
Date:
January 30, 2015
 
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 January 30, 2015
99.2    Quarterly Financial and Statistical Supplement



BFIN-2014.12 - PR results

Exhibit No. 99.1


FOR IMMEDIATE RELEASE

BANKFINANCIAL CORPORATION ANNOUNCES 2014 FINANCIAL RESULTS
Burr Ridge, Illinois - (January 30, 2015) BankFinancial Corporation (Nasdaq - BFIN) (the “Company”) announced today the Company recorded net income of $40.6 million and earnings per share of common stock of $2.01 for the year ended December 31, 2014. The Company’s pre-tax, pre-provision income was $10.8 million in 2014, compared to $5.5 million in 2013.
For the year 2014, the Company’s total loans increased by $74.3 million (7%), and total investment and business loans increased by $93.2 million (10%). The Company enjoyed balanced loan growth between its multifamily / commercial real estate portfolio ($50.5 million) and its commercial / industrial loan and lease portfolio ($42.7 million). The Company’s asset quality continued to strengthen, with non-performing loans representing 1.03% of loans receivable compared to 1.66% at December 31, 2013, and non-performing assets representing 1.27% of total assets compared to 1.70% at December 31, 2013. The Company’s core deposits remained stable, with the ratio of core deposits to total deposits increasing to 80.8%. The Company’s liquid assets exceeded 12% of total assets. The Company’s capital ratios increased and remained strong with a Tier 1 capital ratio of 13.04% and a Tier 1 risk-based capital ratio of 17.21%.
The Company's financial results for 2014 included a tax benefit of $35.1 million reflecting the recovery of a deferred tax asset valuation allowance established in 2011. The Company's recovery of this allowance was supported by numerous positive factors including eight consecutive quarters of sustained pre-tax income, strengthened asset quality trends and the absence of other previously-existing negative factors.
“Our 2014 results reflect the successful execution of key business plan objectives, including achieving and maintaining sustainable loan growth in our targeted loan categories, restoring our historical asset quality and improving our overall efficiency. We look forward to further improvements in these very positive trends in 2015,” said F. Morgan Gasior, the Chairman and CEO of the Company.
The Company expects to release its schedule for the filing of its Form 10-K by March 13, 2015. The Quarterly Financial and Statistical Supplement will be available today on BankFinancial's website, www.bankfinancial.com on the “Stockholder Information” page, and through the EDGAR database on the SEC's website, www.sec.gov. The Quarterly Financial and Statistical Supplement includes comparative GAAP and non-GAAP performance data and financial measures for the most recent five quarters.
BankFinancial 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 website, 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 http://www.sec.gov or on BankFinancial’s web site at http://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

BFIN-2014.12.31 EX99.2 Supplement

Exhibit 99.2



BANKFINANCIAL CORPORATION
FOURTH 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
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (1)
9.76
%
 
1.01
%
 
0.39
%
 
0.26
%
 
0.42
%
Return on equity (ratio of net income to average equity) (1)
75.56

 
7.98

 
3.15

 
2.12

 
3.43

Net interest rate spread (1)
3.39

 
3.35

 
3.37

 
3.30

 
3.25

Net interest margin (1)
3.44

 
3.40

 
3.43

 
3.34

 
3.31

Efficiency ratio
81.24

 
83.45

 
82.15

 
88.79

 
97.51

Noninterest expense to average total assets (1)
3.08

 
3.13

 
3.04

 
3.15

 
3.53

Average interest–earning assets to average interest–bearing liabilities
124.17

 
123.12

 
122.57

 
121.85

 
121.97

Number of full service offices
19

 
19

 
19

 
19

 
20

Employees (full time equivalents)
269

 
270

 
276

 
281

 
301

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
9,693

 
$
11,078

 
$
13,715

 
$
13,869

 
$
15,781

Interest-bearing deposits in other financial institutions
49,888

 
81,847

 
119,790

 
137,855

 
145,176

Securities, at fair value
121,174

 
115,001

 
108,979

 
115,977

 
110,907

Loans held for sale

 

 

 

 

Loans receivable, net
1,172,356

 
1,134,442

 
1,117,593

 
1,097,888

 
1,098,077

Other real estate owned, net
6,358

 
5,990

 
7,704

 
8,670

 
6,306

Stock in Federal Home Loan Bank, at cost
6,257

 
6,257

 
6,257

 
6,068

 
6,068

Premises and equipment, net
34,286

 
34,030

 
34,432

 
34,882

 
35,328

Intangible assets
1,855

 
1,998

 
2,141

 
2,284

 
2,433

Bank owned life insurance
22,193

 
22,140

 
22,083

 
22,022

 
21,958

Deferred taxes
31,643

 

 

 

 

Other assets
9,707

 
8,150

 
9,612

 
9,027

 
11,560

Total assets
$
1,465,410

 
$
1,420,933

 
$
1,442,306

 
$
1,448,542

 
$
1,453,594

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,211,713

 
$
1,218,302

 
$
1,237,340

 
$
1,252,819

 
$
1,252,708

Borrowings
12,921

 
2,834

 
3,068

 
2,668

 
3,055

Other liabilities
24,655

 
18,521

 
23,579

 
16,191

 
22,204

Total liabilities
1,249,289

 
1,239,657

 
1,263,987

 
1,271,678

 
1,277,967

Stockholders’ equity
216,121

 
181,276

 
178,319

 
176,864

 
175,627

Total liabilities and stockholders’ equity
$
1,465,410

 
$
1,420,933

 
$
1,442,306

 
$
1,448,542

 
$
1,453,594

(1)Annualized


Page 2

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


 
2014
 
2013
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
12,413

 
$
12,368

 
$
12,482

 
$
12,086

 
$
12,296

Total interest expense
714

 
746

 
774

 
812

 
842

Net interest income before provision
11,699

 
11,622

 
11,708

 
11,274

 
11,454

Provision for (recovery of) loan losses
(756
)
 
(1,413
)
 
957

 
476

 
(1,178
)
Net interest income
12,455

 
13,035

 
10,751

 
10,798

 
12,632

Noninterest income
1,769

 
1,748

 
1,660

 
1,532

 
1,665

Noninterest expense
10,941

 
11,157

 
10,982

 
11,371

 
12,792

Income before income tax
3,283

 
3,626

 
1,429

 
959

 
1,505

Income tax expense (benefit)
(31,395
)
 
36

 
25

 
17

 

Net income
$
34,678

 
$
3,590

 
$
1,404

 
$
942

 
$
1,505

Basic earnings per common share
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

 
$
0.07

Diluted earnings per common share
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

 
$
0.07

 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
516

 
$
519

 
$
465

 
$
433

 
$
477

Other fee income
566

 
571

 
600

 
527

 
537

Insurance commissions and annuities income
152

 
106

 
86

 
87

 
173

Gain on sales of loans, net
51

 
39

 
44

 
24

 
24

Loss on sale of securities

 

 

 
(7
)
 

Gain (loss) on disposition of premises and equipment

 

 
3

 
2

 
(43
)
Loan servicing fees
108

 
102

 
104

 
104

 
112

Amortization of servicing assets
(29
)
 
(36
)
 
(38
)
 
(32
)
 
(40
)
Recovery (impairment) of servicing assets
(2
)
 
4

 
(6
)
 
(4
)
 
24

Earnings on bank owned life insurance
53

 
57

 
61

 
64

 
77

Trust income
178

 
171

 
170

 
164

 
175

Other
176

 
215

 
171

 
170

 
149

Total noninterest income
$
1,769

 
$
1,748

 
$
1,660

 
$
1,532

 
$
1,665

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
5,828

 
$
5,492

 
$
5,596

 
$
5,958

 
$
6,614

Office occupancy and equipment
1,651

 
1,687

 
1,626

 
1,914

 
1,997

Advertising and public relations
363

 
271

 
304

 
162

 
316

Information technology
672

 
674

 
691

 
639

 
697

Supplies, telephone, and postage
410

 
394

 
384

 
391

 
463

Amortization of intangibles
143

 
143

 
143

 
149

 
150

Nonperforming asset management
219

 
418

 
97

 
104

 
607

Loss (gain) on sales of other real estate owned
75

 
52

 
(98
)
 
6

 
(34
)
Valuation adjustments of other real estate owned
46

 
315

 
33

 
44

 
79

Operations of other real estate owned
127

 
127

 
474

 
207

 
159

FDIC insurance premiums
259

 
208

 
470

 
479

 
468

Other
1,148

 
1,376

 
1,262

 
1,318

 
1,276

Total noninterest expense
$
10,941

 
$
11,157

 
$
10,982

 
$
11,371

 
$
12,792

 
 
 
 

Page 3

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


 
2014
 
2013
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
180,337

 
$
187,318

 
$
193,826

 
$
197,831

 
$
201,382

Multi–family mortgage loans
480,349

 
453,720

 
439,318

 
416,356

 
396,058

Nonresidential real estate loans
234,500

 
243,047

 
246,962

 
251,873

 
263,567

Construction and land loans
1,885

 
2,356

 
2,882

 
3,396

 
6,570

Commercial loans
66,882

 
53,962

 
45,803

 
53,661

 
54,255

Commercial leases
217,143

 
203,563

 
199,908

 
185,474

 
187,112

Consumer loans
2,051

 
2,458

 
2,290

 
2,476

 
2,317

 
1,183,147

 
1,146,424

 
1,130,989

 
1,111,067

 
1,111,261

Net deferred loan origination costs
1,199

 
1,069

 
1,056

 
1,002

 
970

Allowance for loan losses
(11,990
)
 
(13,051
)
 
(14,452
)
 
(14,181
)
 
(14,154
)
Loans, net
$
1,172,356

 
$
1,134,442

 
$
1,117,593

 
$
1,097,888

 
$
1,098,077

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
4,119

 
$
5,584

 
$
3,740

 
$
2,548

 
$
6,316

Multi–family mortgage loans
47,929

 
26,342

 
40,191

 
24,419

 
37,351

Nonresidential real estate loans
7,024

 
3,477

 
5,927

 
6,088

 
26,009

Construction and land loans

 

 

 

 
1,118

Commercial loans
52,810

 
47,332

 
45,611

 
49,659

 
56,222

Commercial leases
38,454

 
32,743

 
43,266

 
22,870

 
47,101

Consumer loans
803

 
798

 
779

 
870

 
962

 
$
151,139

 
$
116,276

 
$
139,514

 
$
106,454

 
$
175,079

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
10,489

 
$
10,735

 
$
6,069

 
$
5,811

 
$
8,749

Multi–family mortgage loans
21,284

 
12,299

 
16,072

 
6,539

 
13,966

Nonresidential real estate loans
13,637

 
8,409

 
10,456

 
12,663

 
9,673

Construction and land loans
176

 
402

 
509

 
791

 
979

Commercial loans
39,955

 
42,153

 
54,471

 
48,638

 
54,744

Commercial leases
22,923

 
31,354

 
26,593

 
26,097

 
19,480

Consumer loans
895

 
902

 
950

 
1,057

 
951

 
$
109,359

 
$
106,254

 
$
115,120

 
$
101,596

 
$
108,542

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2)
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
1,151

 
$
927

 
$
1,420

 
$
28

 
$
1,022

Multi–family mortgage loans
5,000

 
829

 
6,275

 
2,724

 
1,651

Nonresidential real estate loans
5,869

 
2,135

 
6,632

 
6,899

 
3,055

Construction and land loans
141

 
263

 
407

 
748

 
926

Commercial loans
3,149

 
2,569

 
2,064

 
4,441

 
6,262

Commercial leases

 

 

 
26

 
35

Consumer loans

 

 

 
2

 

 
$
15,310

 
$
6,723

 
$
16,798

 
$
14,868

 
$
12,951


(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
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
4,356

 
$
4,226

 
$
5,156

 
$
5,008

 
$
4,641

Multi–family mortgage loans
4,481

 
6,223

 
4,274

 
6,617

 
7,098

Nonresidential real estate loans
3,245

 
4,384

 
4,959

 
8,715

 
4,214

Construction and land loans

 
120

 
118

 
269

 
382

Commercial loans
76

 
82

 
77

 
77

 
77

Commercial leases

 

 
8

 
8

 

Consumer loans
3

 
1

 

 

 
12

Nonaccrual loans
12,161

 
15,036

 
14,592

 
20,694

 
16,424

 
 
 
 
 
 
 
 
 
 
Loans past due over 90 days, still accruing

 

 
16

 

 
228

Loans held for sale

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
806

 
945

 
979

 
1,098

 
901

Multi–family real estate
2,307

 
1,502

 
2,572

 
3,220

 
1,921

Nonresidential real estate
885

 
1,448

 
1,887

 
2,086

 
1,181

Land
135

 
181

 
258

 
258

 
275

Other real estate owned
4,133

 
4,076

 
5,696

 
6,662

 
4,278

Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)
16,294

 
19,112

 
20,304

 
27,356

 
20,930

 
 
 
 
 
 
 
 
 
 
Purchased impaired loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
52

 
$
51

 
$
102

 
$
101

 
$
100

Nonresidential real estate loans

 
161

 
157

 
153

 
1,633

Commercial loans

 

 

 
23

 
23

Purchased impaired loans
52

 
212

 
259

 
277

 
1,756

Purchased other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
457

 
132

 
156

 
156

 
176

Land
1,768

 
1,782

 
1,852

 
1,852

 
1,852

Purchased other real estate owned
2,225

 
1,914

 
2,008

 
2,008

 
2,028

Purchased impaired loans and OREO
2,277

 
2,126

 
2,267

 
2,285

 
3,784

Nonperforming assets
$
18,571

 
$
21,238

 
$
22,571

 
$
29,641

 
$
24,714

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
1.27
%
 
1.49
%
 
1.56
%
 
2.05
%
 
1.70
%
Nonperforming assets to total assets (1)
1.11

 
1.35

 
1.41

 
1.89

 
1.44

Nonaccrual loans to total loans
1.03

 
1.33

 
1.31

 
1.89

 
1.66

Nonaccrual loans to total loans (1)
1.03

 
1.31

 
1.29

 
1.86

 
1.50

Allowance for loan losses to nonperforming loans
98.17

 
85.59

 
97.21

 
67.62

 
76.89

Allowance for loan losses to nonperforming loans(1)
98.59

 
86.80

 
98.93

 
68.53

 
85.00

(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
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
SUBSTANDARD PERFORMING LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
2,010

 
$
2,036

 
$
1,691

 
$
3,690

 
$
2,634

Multi–family mortgage loans
3,949

 
4,346

 
5,293

 
5,906

 
5,063

Nonresidential real estate loans
6,698

 
6,805

 
5,360

 
7,454

 
13,645

Construction and land loans
613

 
796

 
222

 
109

 
832

Commercial loans
705

 
845

 
1,020

 
952

 
977

Commercial leases

 

 

 
184

 
210

Consumer loans

 

 

 
1

 
1

 
$
13,975

 
$
14,828

 
$
13,586

 
$
18,296

 
$
23,362

 
 
 
 
 
 
 
 
 
 
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
30 – 59 days past due
$
4,265

 
$
2,006

 
$
316

 
$
4,131

 
$
5,574

60 – 89 days past due
1,167

 
802

 
1,446

 
1,277

 
1,535

Matured Loans
553

 
4,306

 
1,340

 
2,913

 
3,458

 
$
5,985

 
$
7,114

 
$
3,102

 
$
8,321

 
$
10,567

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
13,051

 
$
14,452

 
$
14,181

 
$
14,154

 
$
15,876

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(229
)
 
(298
)
 
(290
)
 
(56
)
 
(432
)
Multi–family mortgage loans
(449
)
 
(97
)
 
(594
)
 
(90
)
 
(320
)
Nonresidential real estate loans
(266
)
 
(695
)
 
(186
)
 
(580
)
 
(207
)
Construction and land loans

 

 
(1
)
 

 

Commercial loans
(23
)
 
(78
)
 

 
(22
)
 
(62
)
Commercial leases

 
(8
)
 

 

 

Consumer loans
(2
)
 

 
(4
)
 
(6
)
 
(5
)
 
(969
)
 
(1,176
)
 
(1,075
)
 
(754
)
 
(1,026
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
284

 
26

 
97

 
11

 
12

Multi–family mortgage loans
69

 
11

 
6

 
14

 
17

Nonresidential real estate loans
23

 
116

 
264

 
20

 
68

Construction and land loans
90

 
29

 
8

 
250

 
267

Commercial loans
198

 
1,005

 
14

 
8

 
114

Consumer loans

 
1

 

 
2

 
4

 
664

 
1,188

 
389

 
305

 
482

Net (charge–offs) recoveries
(305
)
 
12

 
(686
)
 
(449
)
 
(544
)
Provision for (recovery of) loan losses
(756
)
 
(1,413
)
 
957

 
476

 
(1,178
)
Ending balance
$
11,990

 
$
13,051

 
$
14,452

 
$
14,181

 
$
14,154

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
1.01
%
 
1.14
 %
 
1.28
%
 
1.28
%
 
1.27
%
Net charge–off ratio (1)
0.11

 

 
0.25

 
0.16

 
0.20

(1)
Annualized


Page 6

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


 
2014
 
2013
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
130,711

 
$
128,498

 
$
131,775

 
$
129,732

 
$
126,680

Savings deposits
154,532

 
152,545

 
154,263

 
156,174

 
149,602

Money market accounts
338,499

 
345,331

 
349,639

 
353,656

 
347,017

Interest–bearing NOW accounts
355,112

 
348,293

 
349,874

 
353,338

 
353,787

Certificates of deposits
232,859

 
243,635

 
251,789

 
259,919

 
275,622

 
$
1,211,713

 
$
1,218,302

 
$
1,237,340

 
$
1,252,819

 
$
1,252,708

 
 
 
 
 
 
 
 
 
 
SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,421,804

 
$
1,427,550

 
$
1,444,697

 
$
1,442,667

 
$
1,450,403

Total average interest–earning assets
1,350,815

 
1,355,436

 
1,370,391

 
1,367,225

 
1,374,544

Average loans
1,144,281

 
1,127,735

 
1,119,255

 
1,114,433

 
1,061,829

Average securities
116,234

 
114,805

 
112,691

 
115,089

 
92,223

Average stock in FHLB
6,257

 
6,257

 
6,224

 
6,068

 
6,068

Average other interest–earning assets
84,043

 
106,639

 
132,221

 
131,635

 
214,424

Total average interest–bearing liabilities
1,087,860

 
1,100,947

 
1,118,088

 
1,122,027

 
1,126,973

Average interest–bearing deposits
1,084,373

 
1,097,762

 
1,115,437

 
1,119,445

 
1,123,977

Average borrowings
3,487

 
3,185

 
2,651

 
2,582

 
2,996

Average stockholders’ equity
183,584

 
179,929

 
178,477

 
177,331

 
175,305

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.65
%
 
3.62
%
 
3.65
%
 
3.59
%
 
3.55
%
Average loans
4.17

 
4.22

 
4.33

 
4.26

 
4.44

Average securities
0.98

 
0.98

 
1.02

 
1.04

 
1.17

Average other interest–earning assets
0.40

 
0.36

 
0.32

 
0.27

 
0.26

Total average interest–bearing liabilities
0.26

 
0.27

 
0.28

 
0.29

 
0.30

Average interest–bearing deposits
0.26

 
0.27

 
0.28

 
0.29

 
0.30

Average borrowings
0.34

 
0.25

 
0.15

 
0.31

 
0.26

Net interest rate spread
3.39

 
3.35

 
3.37

 
3.30

 
3.25

Net interest margin
3.44

 
3.40

 
3.43

 
3.34

 
3.31

(1)     Annualized

Page 7

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


 
2014
 
2013
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
14.75

 
12.76
%
 
12.36
%
 
12.21
%
 
12.08
%
Tangible equity to tangible total assets (end of period)
13.08

 
12.63

 
12.23

 
12.07

 
11.93

Risk–based total capital ratio
18.31

 
17.65

 
17.41

 
17.52

 
17.28

Risk–based tier 1 capital ratio
17.21

 
16.45

 
16.16

 
16.27

 
16.03

Tier 1 leverage ratio
13.04

 
12.62

 
12.21

 
12.05

 
11.92

Tier 1 capital
$
187,290

 
$
178,904

 
$
175,778

 
$
174,580

 
$
172,775

BankFinancial FSB
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
16.21
%
 
15.48
%
 
15.13
%
 
15.17
%
 
14.93
%
Risk–based tier 1 capital ratio
15.11

 
14.28

 
13.88

 
13.92

 
13.68

Tier 1 leverage ratio
11.45

 
10.95

 
10.50

 
10.31

 
10.16

Tier 1 capital
$
164,420

 
$
155,208

 
$
151,035

 
$
148,943

 
$
147,363

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
11.86

 
$
10.55

 
$
11.16

 
$
9.98

 
$
9.16

High
12.17

 
10.69

 
11.24

 
10.33

 
9.74

Low
10.24

 
10.43

 
9.40

 
9.06

 
8.70

Book value per share
$
10.24

 
$
8.59

 
$
8.45

 
$
8.38

 
$
8.32

Tangible book value per share
$
10.15

 
$
8.50

 
$
8.35

 
$
8.27

 
$
8.21

Cash dividends declared on common stock
$
0.03

 
$
0.04

 
$
0.01

 
$

 
$
0.02

Dividend payout ratio
1.83
%
 
23.50
%
 
15.05
%
 
N.M.

 
28.04
%
Stock repurchases
$

 
$

 
$

 
$

 
$

Stock repurchases – shares

 

 

 

 

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income
$
34,678

 
$
3,590

 
$
1,404

 
$
942

 
$
1,505

Average common shares outstanding
21,101,966

 
21,101,966

 
21,101,966

 
21,101,966

 
21,101,966

Less: Unearned ESOP shares
(841,526
)
 
(866,193
)
 
(937,585
)
 
(977,561
)
 
(1,002,041
)
Unvested restricted stock shares
(16,822
)
 
(16,822
)
 
(18,572
)
 
(25,750
)
 
(25,750
)
Weighted average common shares outstanding
20,243,618


20,218,951

 
20,145,809

 
20,098,655

 
20,074,175

Plus: Dilutive common shares equivalents
9,755

 
16,456

 
14,241

 
12,045

 
9,500

Weighted average dilutive common shares outstanding
20,253,373

 
20,235,407

 
20,160,050

 
20,110,700

 
20,083,675

Basic earnings per common share
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

 
$
0.08

Diluted earnings per common share
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

 
$
0.08



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
December 31,
 
Year Ended
December 31,
 
2014
 
2013
 
2014
 
2013
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
Income before income taxes
$
3,283

 
$
1,505

 
$
9,297

 
$
3,298

Recovery of loan losses
(756
)
 
(1,178
)
 
(736
)
 
(687
)
 
2,527

 
327

 
8,561

 
2,611

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
219

 
607

 
838

 
2,638

Loss (gain) on sale of other real estate owned
75

 
(34
)
 
35

 
148

Valuation adjustments of other real estate owned
46

 
79

 
438

 
550

Operations of other real estate owned
127

 
159

 
935

 
915

Adjustments
467

 
811

 
2,246

 
2,911

Pre–tax pre–provision earnings from core operations
$
2,994

 
$
1,138

 
$
10,807

 
$
5,522

 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.84
%
 
0.31
%
 
0.75
%
 
0.38
%

(1)
Annualized


Page 10

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

FOR THE LATEST FIVE QUARTERS
 
2014
 
2013
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
 
Income before income taxes
$
3,283

 
$
3,626

 
$
1,429

 
$
959

 
$
1,505

Provision for (recovery of) loan losses
(756
)
 
(1,413
)
 
957

 
476

 
(1,178
)
 
2,527

 
2,213

 
2,386

 
1,435

 
327

Adjustments:
 
 
 
 
 
 
 
 
 
Nonperforming asset management
219

 
418

 
97

 
104

 
607

Loss (gain) on sale of other real estate owned
75

 
52

 
(98
)
 
6

 
(34
)
Valuation adjustments of other real estate owned
46

 
315

 
33

 
44

 
79

Operations of other real estate owned
127

 
127

 
474

 
207

 
159

 
467

 
912

 
506

 
361

 
811

Pre–tax pre–provision earnings from core operations
$
2,994

 
$
3,125

 
$
2,892

 
$
1,796

 
$
1,138

 
 
 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.84
%
 
0.88
%
 
0.80
%
 
0.50
%
 
0.31
%

(1)
Annualized


Page 11