BFIN2015.03.31 8K Earnings


SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
 
FORM 8-K 
 
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 4, 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
(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 2015 results in a conference call and webcast for stockholders and analysts on Wednesday, May 6, 2015 at 9:30 a.m. Chicago, Illinois Time.
The conference call may be accessed by calling (844) 413-1780 using participant passcode 38481001. The conference call will be simultaneously webcast at www.bankfinancial.com, under Investor Relations.
Item 8.01.
Other Events
On May 4, 2015, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 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, 2015. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.
Item 9.01.
Financial Statements and Exhibits.
(a)
Not Applicable.
(b)
Not Applicable.
(c)
Not Applicable.
(d)
Exhibits.

Exhibit No.    Description
99.1    Press Release dated May 4, 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
 
 
 
 
 
 
 
Dated:
May 4, 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 May 4, 2015
99.2    Quarterly Financial and Statistical Supplement



BFIN2015.03 exhibit99.1 Earnings PR


Exhibit 99.1

 
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the First Quarter 2015 and
Will Host Conference Call and Webcast on May 6, 2015
Burr Ridge, Illinois – (May 4, 2015) BankFinancial Corporation (Nasdaq – BFIN) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 and a 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 $2.0 million, or $0.10 per common share, for the three months ended March 31, 2015, compared to $942,000, or 0.05 per common share, for the three months ended March 31, 2014. At March 31, 2015, BankFinancial had total assets of $1.443 billion, total loans of $1.154 billion, total deposits of $1.203 billion and stockholders' equity of $218 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 2015 results in a conference call and webcast for stockholders and analysts on Wednesday, May 6, 2015 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 38481001. 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 Wednesday, May 20, 2015 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-2015.03.31 EX99.2 Supplement

Exhibit 99.2



BANKFINANCIAL CORPORATION
FIRST QUARTER 2015
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)


 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (1)
0.55
%
 
9.76
%
 
1.01
%
 
0.39
%
 
0.26
%
Return on equity (ratio of net income to average equity) (1)
3.64

 
75.56

 
7.98

 
3.15

 
2.12

Net interest rate spread (1)
3.42

 
3.39

 
3.35

 
3.37

 
3.30

Net interest margin (1)
3.48

 
3.44

 
3.40

 
3.43

 
3.34

Efficiency ratio
80.49

 
81.24

 
83.45

 
82.15

 
88.79

Noninterest expense to average total assets (1)
2.90

 
3.08

 
3.13

 
3.04

 
3.15

Average interest–earning assets to average interest–bearing liabilities
124.76

 
124.52

 
123.36

 
122.62

 
121.85

Number of full service offices
19

 
19

 
19

 
19

 
19

Employees (full time equivalents)
267

 
269

 
270

 
276

 
281

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
10,211

 
$
9,693

 
$
11,078

 
$
13,715

 
$
13,869

Interest-bearing deposits in other financial institutions
56,043

 
49,888

 
81,847

 
119,790

 
137,855

Securities, at fair value
114,039

 
121,174

 
115,001

 
108,979

 
115,977

Loans receivable, net
1,153,638

 
1,172,356

 
1,134,442

 
1,117,593

 
1,097,888

Other real estate owned, net
6,316

 
6,358

 
5,990

 
7,704

 
8,670

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

 
6,257

 
6,257

 
6,257

 
6,068

Premises and equipment, net
33,943

 
34,286

 
34,030

 
34,432

 
34,882

Intangible assets
1,713

 
1,855

 
1,998

 
2,141

 
2,284

Bank owned life insurance
22,242

 
22,193

 
22,140

 
22,083

 
22,022

Deferred taxes
30,437

 
31,643

 

 

 

Other assets
8,530

 
9,707

 
8,150

 
9,612

 
9,027

Total assets
$
1,443,369

 
$
1,465,410

 
$
1,420,933

 
$
1,442,306

 
$
1,448,542

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,202,764

 
$
1,211,713

 
$
1,218,302

 
$
1,237,340

 
$
1,252,819

Borrowings
3,217

 
12,921

 
2,834

 
3,068

 
2,668

Other liabilities
19,842

 
24,655

 
18,521

 
23,579

 
16,191

Total liabilities
1,225,823

 
1,249,289

 
1,239,657

 
1,263,987

 
1,271,678

Stockholders’ equity
217,546

 
216,121

 
181,276

 
178,319

 
176,864

Total liabilities and stockholders’ equity
$
1,443,369

 
$
1,465,410

 
$
1,420,933

 
$
1,442,306

 
$
1,448,542

(1)Annualized


Page 2

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


 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
12,211

 
$
12,413

 
$
12,368

 
$
12,482

 
$
12,086

Total interest expense
686

 
714

 
746

 
774

 
812

Net interest income before provision
11,525

 
11,699

 
11,622

 
11,708

 
11,274

Provision for (recovery of) loan losses
(724
)
 
(756
)
 
(1,413
)
 
957

 
476

Net interest income
12,249

 
12,455

 
13,035

 
10,751

 
10,798

Noninterest income
1,536

 
1,769

 
1,748

 
1,660

 
1,532

Noninterest expense
10,513

 
10,941

 
11,157

 
10,982

 
11,371

Income before income tax
3,272

 
3,283

 
3,626

 
1,429

 
959

Income tax expense (benefit)
1,286

 
(31,395
)
 
36

 
25

 
17

Net income
$
1,986

 
$
34,678

 
$
3,590

 
$
1,404

 
$
942

Basic earnings per common share
$
0.10

 
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

Diluted earnings per common share
$
0.10

 
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
455

 
$
522

 
$
527

 
$
472

 
$
439

Other fee income
535

 
560

 
563

 
593

 
521

Insurance commissions and annuities income
63

 
152

 
106

 
86

 
87

Gain on sales of loans, net
27

 
51

 
39

 
44

 
24

Loss on sale of securities

 

 

 

 
(7
)
Gain on disposition of premises and equipment

 

 

 
3

 
2

Loan servicing fees
90

 
108

 
102

 
104

 
104

Amortization of servicing assets
(35
)
 
(29
)
 
(36
)
 
(38
)
 
(32
)
Recovery (impairment) of servicing assets
10

 
(2
)
 
4

 
(6
)
 
(4
)
Earnings on bank owned life insurance
49

 
53

 
57

 
61

 
64

Trust income
174

 
178

 
171

 
170

 
164

Other
168

 
176

 
215

 
171

 
170

Total noninterest income
$
1,536

 
$
1,769

 
$
1,748

 
$
1,660

 
$
1,532

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
5,581

 
$
5,828

 
$
5,492

 
$
5,596

 
$
5,958

Office occupancy and equipment
1,695

 
1,651

 
1,687

 
1,626

 
1,914

Advertising and public relations
341

 
363

 
271

 
304

 
162

Information technology
639

 
672

 
674

 
691

 
639

Supplies, telephone, and postage
411

 
410

 
394

 
384

 
391

Amortization of intangibles
142

 
143

 
143

 
143

 
149

Nonperforming asset management
91

 
219

 
418

 
97

 
104

Loss (gain) on sales of other real estate owned
(58
)
 
75

 
52

 
(98
)
 
6

Valuation adjustments of other real estate owned
213

 
46

 
315

 
33

 
44

Operations of other real estate owned
199

 
127

 
127

 
474

 
207

FDIC insurance premiums
235

 
259

 
208

 
470

 
479

Other
1,024

 
1,148

 
1,376

 
1,262

 
1,318

Total noninterest expense
$
10,513

 
$
10,941

 
$
11,157

 
$
10,982

 
$
11,371

 
 
 
 

Page 3

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


 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
176,910

 
$
180,337

 
$
187,318

 
$
193,826

 
$
197,831

Multi–family mortgage loans
472,432

 
480,349

 
453,720

 
439,318

 
416,356

Nonresidential real estate loans
226,461

 
234,500

 
243,047

 
246,962

 
251,873

Construction and land loans
1,404

 
1,885

 
2,356

 
2,882

 
3,396

Commercial loans
64,953

 
66,882

 
53,962

 
45,803

 
53,661

Commercial leases
219,988

 
217,143

 
203,563

 
199,908

 
185,474

Consumer loans
1,747

 
2,051

 
2,458

 
2,290

 
2,476

 
1,163,895

 
1,183,147

 
1,146,424

 
1,130,989

 
1,111,067

Net deferred loan origination costs
1,319

 
1,199

 
1,069

 
1,056

 
1,002

Allowance for loan losses
(11,576
)
 
(11,990
)
 
(13,051
)
 
(14,452
)
 
(14,181
)
Loans, net
$
1,153,638

 
$
1,172,356

 
$
1,134,442

 
$
1,117,593

 
$
1,097,888

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
2,388

 
$
4,119

 
$
5,584

 
$
3,740

 
$
2,548

Multi–family mortgage loans
13,417

 
47,929

 
26,342

 
40,191

 
24,419

Nonresidential real estate loans
4,045

 
7,024

 
3,477

 
5,927

 
6,088

Commercial loans
45,051

 
52,810

 
47,332

 
45,611

 
49,659

Commercial leases
28,920

 
38,454

 
32,743

 
43,266

 
22,870

Consumer loans
780

 
803

 
798

 
779

 
870

 
$
94,601

 
$
151,139

 
$
116,276

 
$
139,514

 
$
106,454

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
6,007

 
$
10,489

 
$
10,735

 
$
6,069

 
$
5,811

Multi–family mortgage loans
18,303

 
21,284

 
12,299

 
16,072

 
6,539

Nonresidential real estate loans
10,593

 
13,637

 
8,409

 
10,456

 
12,663

Construction and land loans
551

 
176

 
402

 
509

 
791

Commercial loans
46,822

 
39,955

 
42,153

 
54,471

 
48,638

Commercial leases
28,052

 
22,923

 
31,354

 
26,593

 
26,097

Consumer loans
830

 
895

 
902

 
950

 
1,057

 
$
111,158

 
$
109,359

 
$
106,254

 
$
115,120

 
$
101,596

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2)
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
1,502

 
$
1,151

 
$
927

 
$
1,420

 
$
28

Multi–family mortgage loans
4,566

 
5,000

 
829

 
6,275

 
2,724

Nonresidential real estate loans
2,823

 
5,869

 
2,135

 
6,632

 
6,899

Construction and land loans
510

 
141

 
263

 
407

 
748

Commercial loans
4,772

 
3,149

 
2,569

 
2,064

 
4,441

Commercial leases

 

 

 

 
26

Consumer loans

 

 

 

 
2

 
$
14,173

 
$
15,310

 
$
6,723

 
$
16,798

 
$
14,868


(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)


 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans (1):
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
3,816

 
$
4,408

 
$
4,277

 
$
5,258

 
$
5,109

Multi–family mortgage loans
3,441

 
4,481

 
6,223

 
4,274

 
6,617

Nonresidential real estate loans
5,931

 
3,245

 
4,545

 
5,116

 
8,868

Construction and land loans

 

 
120

 
118

 
269

Commercial loans
183

 
76

 
82

 
77

 
100

Commercial leases

 

 

 
8

 
8

Consumer loans

 
3

 
1

 

 

Nonaccrual loans
13,371

 
12,213

 
15,248

 
14,851

 
20,971

 
 
 
 
 
 
 
 
 
 
Loans past due over 90 days, still accruing

 

 

 
16

 

 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
677

 
806

 
945

 
979

 
1,098

Multi–family real estate
2,242

 
2,307

 
1,502

 
2,572

 
3,220

Nonresidential real estate
1,169

 
885

 
1,448

 
1,887

 
2,086

Land
135

 
135

 
181

 
258

 
258

Other real estate owned
4,223

 
4,133

 
4,076

 
5,696

 
6,662

Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)
17,594

 
16,346

 
19,324

 
20,563

 
27,633

 
 
 
 
 
 
 
 
 
 
Purchased other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
325

 
457

 
132

 
156

 
156

Land
1,768

 
1,768

 
1,782

 
1,852

 
1,852

Purchased other real estate owned
2,093

 
2,225

 
1,914

 
2,008

 
2,008

Nonperforming assets
$
19,687

 
$
18,571

 
$
21,238

 
$
22,571

 
$
29,641

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
1.36
%
 
1.27
%
 
1.49
%
 
1.56
%
 
2.05
%
Nonperforming assets to total assets (2)
1.22

 
1.11

 
1.35

 
1.41

 
1.89

Nonaccrual loans to total loans
1.15

 
1.03

 
1.33

 
1.31

 
1.89

Allowance for loan losses to nonperforming loans
86.58

 
98.17

 
85.59

 
97.21

 
67.62

(1)
Purchased impaired loans are combined with nonaccrual loans in the above table.
(2)
.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)


 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
SUBSTANDARD PERFORMING LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
878

 
$
2,010

 
$
2,036

 
$
1,691

 
$
3,690

Multi–family mortgage loans
5,897

 
3,949

 
4,346

 
5,293

 
5,906

Nonresidential real estate loans
4,973

 
6,698

 
6,805

 
5,360

 
7,454

Construction and land loans
658

 
613

 
796

 
222

 
109

Commercial loans
516

 
705

 
845

 
1,020

 
952

Commercial leases

 

 

 

 
184

Consumer loans

 

 

 

 
1

 
$
12,922

 
$
13,975

 
$
14,828

 
$
13,586

 
$
18,296

 
 
 
 
 
 
 
 
 
 
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
30 – 59 days past due
$
7,874

 
$
4,265

 
$
2,006

 
$
316

 
$
4,131

60 – 89 days past due
255

 
1,167

 
802

 
1,446

 
1,277

Matured Loans
491

 
553

 
4,306

 
1,340

 
2,913

 
$
8,620

 
$
5,985

 
$
7,114

 
$
3,102

 
$
8,321

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
11,990

 
$
13,051

 
$
14,452

 
$
14,181

 
$
14,154

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(103
)
 
(229
)
 
(298
)
 
(290
)
 
(56
)
Multi–family mortgage loans
(19
)
 
(449
)
 
(97
)
 
(594
)
 
(90
)
Nonresidential real estate loans
(11
)
 
(266
)
 
(695
)
 
(186
)
 
(580
)
Construction and land loans

 

 

 
(1
)
 

Commercial loans
(98
)
 
(23
)
 
(78
)
 

 
(22
)
Commercial leases

 

 
(8
)
 

 

Consumer loans
(4
)
 
(2
)
 

 
(4
)
 
(6
)
 
(235
)
 
(969
)
 
(1,176
)
 
(1,075
)
 
(754
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
60

 
284

 
26

 
97

 
11

Multi–family mortgage loans
4

 
69

 
11

 
6

 
14

Nonresidential real estate loans
16

 
23

 
116

 
264

 
20

Construction and land loans
6

 
90

 
29

 
8

 
250

Commercial loans
457

 
198

 
1,005

 
14

 
8

Commercial leases
1

 

 

 

 

Consumer loans
1

 

 
1

 

 
2

 
545

 
664

 
1,188

 
389

 
305

Net (charge–offs) recoveries
310

 
(305
)
 
12

 
(686
)
 
(449
)
Provision for (recovery of) loan losses
(724
)
 
(756
)
 
(1,413
)
 
957

 
476

Ending balance
$
11,576

 
$
11,990

 
$
13,051

 
$
14,452

 
$
14,181

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
0.99
 %
 
1.01
%
 
1.14
 %
 
1.28
%
 
1.28
%
Net charge–off (recovery) ratio (1)
(0.11
)
 
0.11

 

 
0.25

 
0.16

(1)
Annualized


Page 6

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


 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
131,072

 
$
134,129

 
$
131,121

 
$
132,683

 
$
129,732

Savings deposits
157,892

 
154,532

 
152,545

 
154,263

 
156,174

Money market accounts
339,329

 
338,246

 
345,185

 
349,639

 
353,656

Interest–bearing NOW accounts
343,949

 
351,947

 
345,816

 
348,966

 
353,338

Certificates of deposits
230,522

 
232,859

 
243,635

 
251,789

 
259,919

 
$
1,202,764

 
$
1,211,713

 
$
1,218,302

 
$
1,237,340

 
$
1,252,819

 
 
 
 
 
 
 
 
 
 
SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,448,335

 
$
1,421,804

 
$
1,427,550

 
$
1,444,697

 
$
1,442,667

Total average interest–earning assets
1,344,592

 
1,350,815

 
1,355,436

 
1,370,391

 
1,367,225

Average loans
1,164,107

 
1,144,281

 
1,127,735

 
1,119,255

 
1,114,433

Average securities
121,958

 
116,234

 
114,805

 
112,691

 
115,089

Average stock in FHLB
6,257

 
6,257

 
6,257

 
6,224

 
6,068

Average other interest–earning assets
52,270

 
84,043

 
106,639

 
132,221

 
131,635

Total average interest–bearing liabilities
1,077,712

 
1,084,840

 
1,098,727

 
1,117,564

 
1,122,027

Average interest–bearing deposits
1,074,552

 
1,081,353

 
1,095,542

 
1,114,913

 
1,119,445

Average borrowings
3,160

 
3,487

 
3,185

 
2,651

 
2,582

Average stockholders’ equity
218,459

 
183,584

 
179,929

 
178,477

 
177,331

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.68
%
 
3.65
%
 
3.62
%
 
3.65
%
 
3.59
%
Average loans
4.12

 
4.17

 
4.22

 
4.33

 
4.26

Average securities
1.09

 
0.98

 
0.98

 
1.02

 
1.04

Average other interest–earning assets
0.42

 
0.40

 
0.36

 
0.32

 
0.27

Total average interest–bearing liabilities
0.26

 
0.26

 
0.27

 
0.28

 
0.29

Average interest–bearing deposits
0.26

 
0.26

 
0.27

 
0.28

 
0.29

Average borrowings
0.26

 
0.34

 
0.25

 
0.15

 
0.31

Net interest rate spread
3.42

 
3.39

 
3.35

 
3.37

 
3.30

Net interest margin
3.48

 
3.44

 
3.40

 
3.43

 
3.34

(1)     Annualized

Page 7

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


 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
CAPITAL RATIOS (1)
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
15.07
%
 
14.75
%
 
12.76
%
 
12.36
%
 
12.21
%
Tangible equity to tangible total assets (end of period)
14.97

 
14.64

 
12.63

 
12.23

 
12.07

Risk–based total capital ratio
18.40

 
18.31

 
17.65

 
17.41

 
17.52

Risk–based tier 1 capital ratio
17.35

 
17.21

 
16.45

 
16.16

 
16.27

Tier 1 leverage ratio
13.43

 
13.04

 
12.62

 
12.21

 
12.05

Tier 1 capital
$
190,970

 
$
187,290

 
$
178,904

 
$
175,778

 
$
174,580

BankFinancial FSB
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
14.95
%
 
16.21
%
 
15.48
%
 
15.13
%
 
15.17
%
Risk–based tier 1 capital ratio
13.89

 
15.11

 
14.28

 
13.88

 
13.92

Tier 1 leverage ratio
10.74

 
11.45

 
10.95

 
10.50

 
10.31

Tier 1 capital
$
152,777

 
$
164,420

 
$
155,208

 
$
151,035

 
$
148,943

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
13.14

 
$
11.86

 
$
10.55

 
$
11.16

 
$
9.98

High
13.16

 
12.17

 
10.69

 
11.24

 
10.33

Low
11.07

 
10.24

 
10.43

 
9.40

 
9.06

Book value per share
$
10.31

 
$
10.24

 
$
8.59

 
$
8.45

 
$
8.38

Tangible book value per share
$
10.23

 
$
10.15

 
$
8.50

 
$
8.35

 
$
8.27

Cash dividends declared on common stock
$
0.04

 
$
0.03

 
$
0.04

 
$
0.01

 
$

Dividend payout ratio
42.50
%
 
1.83
%
 
23.50
%
 
15.05
%
 
N.M.

Stock repurchases
$

 
$

 
$

 
$

 
$

Stock repurchases – shares

 

 

 

 

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income
$
1,986

 
$
34,678

 
$
3,590

 
$
1,404

 
$
942

Average common shares outstanding
21,101,966

 
21,101,966

 
21,101,966

 
21,101,966

 
21,101,966

Less: Unearned ESOP shares
(825,348
)
 
(841,526
)
 
(866,193
)
 
(937,585
)
 
(977,561
)
Unvested restricted stock shares
(16,822
)
 
(16,822
)
 
(16,822
)
 
(18,572
)
 
(25,750
)
Weighted average common shares outstanding
20,259,796


20,243,618

 
20,218,951

 
20,145,809

 
20,098,655

Plus: Dilutive common shares equivalents
5,888

 
9,755

 
16,456

 
14,241

 
12,045

Weighted average dilutive common shares outstanding
20,265,684

 
20,253,373

 
20,235,407

 
20,160,050

 
20,110,700

Basic earnings per common share
$
0.10

 
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

Diluted earnings per common share
$
0.10

 
$
1.72

 
$
0.17

 
$
0.07

 
$
0.05

(1) All Capital amounts and ratios prior to March 31, 2015 were calculated Pre-Basel III requirements.
N.M. Not Meaningful


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 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
 
2015
 
2014
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
 
Income before income taxes
$
3,272

 
$
3,283

 
$
3,626

 
$
1,429

 
$
959

Provision for (recovery of) loan losses
(724
)
 
(756
)
 
(1,413
)
 
957

 
476

 
2,548

 
2,527

 
2,213

 
2,386

 
1,435

Adjustments:
 
 
 
 
 
 
 
 
 
Nonperforming asset management
91

 
219

 
418

 
97

 
104

Loss (gain) on sale of other real estate owned
(58
)
 
75

 
52

 
(98
)
 
6

Valuation adjustments of other real estate owned
213

 
46

 
315

 
33

 
44

Operations of other real estate owned
199

 
127

 
127

 
474

 
207

 
445

 
467

 
912

 
506

 
361

Pre–tax pre–provision earnings from core operations
$
2,993

 
$
2,994

 
$
3,125

 
$
2,892

 
$
1,796

 
 
 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.83
%
 
0.84
%
 
0.88
%
 
0.80
%
 
0.50
%

(1)
Annualized


Page 10