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 28, 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 third quarter 2015 results in a conference call and webcast for stockholders and analysts on Friday, October 30, 2015 at 9:30 a.m. Chicago, Illinois Time.
The conference call may be accessed by calling (844) 413-1780 using participant passcode 66774235. The conference call will be simultaneously webcast at www.bankfinancial.com, under Investor Relations.
Item 8.01. | Other Events |
On October 28, 2015, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 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, 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 October 28, 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: | October 28, 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 October 28, 2015
99.2 Quarterly Financial and Statistical Supplement
Exhibit 99.1
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the Third Quarter 2015 and
Will Host Conference Call and Webcast on October 30, 2015
Burr Ridge, Illinois – (October 28, 2015) BankFinancial Corporation (Nasdaq – BFIN) filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 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 $2.3 million, or $0.12 per common share, for the three months ended September 30, 2015, compared to $3.6 million, or $0.17 per common share, for the three months ended September 30, 2014. BankFinancial reported net income of $6.6 million, or $0.33 per common share, for the nine months ended September 30, 2015, compared to $5.9 million, or $0.29 per common share, for the nine months ended September 30, 2014. At September 30, 2015, BankFinancial had total assets of $1.431 billion, total loans of $1.162 billion, total deposits of $1.182 billion and stockholders' equity of $213 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 2015 results in a conference call and webcast for stockholders and analysts on Friday, October 30, 2015 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 66774235. 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 Friday, November 13, 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, as supplemented by subsequent filings 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 | |
Exhibit 99.2
BANKFINANCIAL CORPORATION
THIRD 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 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
PERFORMANCE MEASUREMENTS | |||||||||||||||||||
Return on assets (ratio of net income to average total assets) (1) | 0.65 | % | 0.61 | % | 0.55 | % | 9.76 | % | 1.01 | % | |||||||||
Return on equity (ratio of net income to average equity) (1) | 4.41 | 4.14 | 3.64 | 75.56 | 7.98 | ||||||||||||||
Net interest rate spread (1) | 3.33 | 3.36 | 3.42 | 3.39 | 3.35 | ||||||||||||||
Net interest margin (1) | 3.40 | 3.42 | 3.48 | 3.44 | 3.40 | ||||||||||||||
Efficiency ratio | 77.77 | 76.04 | 80.49 | 81.24 | 83.45 | ||||||||||||||
Noninterest expense to average total assets (1) | 2.85 | 2.77 | 2.90 | 3.08 | 3.13 | ||||||||||||||
Average interest–earning assets to average interest–bearing liabilities | 134.89 | 131.42 | 124.76 | 124.52 | 123.36 | ||||||||||||||
Number of full service offices | 19 | 19 | 19 | 19 | 19 | ||||||||||||||
Employees (full time equivalents) | 264 | 264 | 267 | 269 | 270 | ||||||||||||||
SUMMARY STATEMENT OF FINANCIAL CONDITION | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from other financial institutions | $ | 8,809 | $ | 10,591 | $ | 10,211 | $ | 9,693 | $ | 11,078 | |||||||||
Interest-bearing deposits in other financial institutions | 52,661 | 66,835 | 56,043 | 49,888 | 81,847 | ||||||||||||||
Securities, at fair value | 104,242 | 99,137 | 114,039 | 121,174 | 115,001 | ||||||||||||||
Loans receivable, net | 1,162,298 | 1,156,667 | 1,153,638 | 1,172,356 | 1,134,442 | ||||||||||||||
Other real estate owned, net | 4,809 | 5,539 | 6,316 | 6,358 | 5,990 | ||||||||||||||
Stock in Federal Home Loan Bank, at cost | 6,257 | 6,257 | 6,257 | 6,257 | 6,257 | ||||||||||||||
Premises and equipment, net | 33,063 | 33,502 | 33,943 | 34,286 | 34,030 | ||||||||||||||
Intangible assets | 1,441 | 1,577 | 1,713 | 1,855 | 1,998 | ||||||||||||||
Bank owned life insurance | 22,335 | 22,287 | 22,242 | 22,193 | 22,140 | ||||||||||||||
Deferred taxes | 27,733 | 29,145 | 30,437 | 31,643 | — | ||||||||||||||
Other assets | 7,775 | 8,201 | 8,530 | 9,707 | 8,150 | ||||||||||||||
Total assets | $ | 1,431,423 | $ | 1,439,738 | $ | 1,443,369 | $ | 1,465,410 | $ | 1,420,933 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Deposits | $ | 1,181,534 | $ | 1,200,226 | $ | 1,202,764 | $ | 1,211,713 | $ | 1,218,302 | |||||||||
Borrowings | 18,048 | 3,039 | 3,217 | 12,921 | 2,834 | ||||||||||||||
Other liabilities | 18,767 | 24,725 | 19,842 | 24,655 | 18,521 | ||||||||||||||
Total liabilities | 1,218,349 | 1,227,990 | 1,225,823 | 1,249,289 | 1,239,657 | ||||||||||||||
Stockholders’ equity | 213,074 | 211,748 | 217,546 | 216,121 | 181,276 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,431,423 | $ | 1,439,738 | $ | 1,443,369 | $ | 1,465,410 | $ | 1,420,933 | |||||||||
(1)Annualized
Page 2
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2015 | 2014 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
SUMMARY STATEMENT OF OPERATIONS | |||||||||||||||||||
Total interest income | $ | 12,147 | $ | 12,193 | $ | 12,211 | $ | 12,413 | $ | 12,368 | |||||||||
Total interest expense | 699 | 691 | 686 | 714 | 746 | ||||||||||||||
Net interest income before provision | 11,448 | 11,502 | 11,525 | 11,699 | 11,622 | ||||||||||||||
Recovery of loan losses | (956 | ) | (488 | ) | (724 | ) | (756 | ) | (1,413 | ) | |||||||||
Net interest income | 12,404 | 11,990 | 12,249 | 12,455 | 13,035 | ||||||||||||||
Noninterest income | 1,709 | 1,689 | 1,536 | 1,769 | 1,748 | ||||||||||||||
Noninterest expense | 10,232 | 10,031 | 10,513 | 10,941 | 11,157 | ||||||||||||||
Income before income tax | 3,881 | 3,648 | 3,272 | 3,283 | 3,626 | ||||||||||||||
Income tax expense (benefit) | 1,532 | 1,424 | 1,286 | (31,395 | ) | 36 | |||||||||||||
Net income | $ | 2,349 | $ | 2,224 | $ | 1,986 | $ | 34,678 | $ | 3,590 | |||||||||
Basic earnings per common share | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 1.72 | $ | 0.17 | |||||||||
Diluted earnings per common share | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 1.72 | $ | 0.17 | |||||||||
NONINTEREST INCOME AND EXPENSE | |||||||||||||||||||
Noninterest Income | |||||||||||||||||||
Deposit service charges and fees | $ | 562 | $ | 476 | $ | 455 | $ | 521 | $ | 527 | |||||||||
Other fee income | 502 | 601 | 535 | 561 | 563 | ||||||||||||||
Insurance commissions and annuities income | 68 | 86 | 63 | 152 | 106 | ||||||||||||||
Gain on sales of loans, net | 37 | 28 | 27 | 51 | 39 | ||||||||||||||
Loss on disposition of premises and equipment | — | (1 | ) | — | — | — | |||||||||||||
Loan servicing fees | 85 | 96 | 90 | 108 | 102 | ||||||||||||||
Amortization of servicing assets | (35 | ) | (35 | ) | (35 | ) | (29 | ) | (36 | ) | |||||||||
Recovery (impairment) of servicing assets | (15 | ) | 3 | 10 | (2 | ) | 4 | ||||||||||||
Earnings on bank owned life insurance | 48 | 45 | 49 | 53 | 57 | ||||||||||||||
Trust income | 172 | 183 | 174 | 178 | 171 | ||||||||||||||
Other | 285 | 207 | 168 | 176 | 215 | ||||||||||||||
Total noninterest income | $ | 1,709 | $ | 1,689 | $ | 1,536 | $ | 1,769 | $ | 1,748 | |||||||||
Noninterest Expense | |||||||||||||||||||
Compensation and benefits | $ | 5,329 | $ | 5,278 | $ | 5,581 | $ | 5,828 | $ | 5,492 | |||||||||
Office occupancy and equipment | 1,537 | 1,670 | 1,695 | 1,651 | 1,687 | ||||||||||||||
Advertising and public relations | 212 | 227 | 344 | 366 | 272 | ||||||||||||||
Information technology | 686 | 657 | 639 | 672 | 674 | ||||||||||||||
Supplies, telephone, and postage | 393 | 385 | 411 | 410 | 394 | ||||||||||||||
Amortization of intangibles | 136 | 136 | 142 | 143 | 143 | ||||||||||||||
Nonperforming asset management | 244 | 108 | 90 | 219 | 418 | ||||||||||||||
Loss (gain) on sales of other real estate owned | (11 | ) | (22 | ) | (58 | ) | 75 | 52 | |||||||||||
Valuation adjustments of other real estate owned | 231 | 23 | 213 | 46 | 315 | ||||||||||||||
Operations of other real estate owned | 114 | 91 | 199 | 127 | 127 | ||||||||||||||
FDIC insurance premiums | 202 | 262 | 235 | 259 | 208 | ||||||||||||||
Other | 1,159 | 1,216 | 1,022 | 1,145 | 1,375 | ||||||||||||||
Total noninterest expense | $ | 10,232 | $ | 10,031 | $ | 10,513 | $ | 10,941 | $ | 11,157 | |||||||||
Page 3
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2015 | 2014 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
LOANS | |||||||||||||||||||
One–to–four family residential real estate loans | $ | 164,124 | $ | 170,146 | $ | 176,910 | $ | 180,337 | $ | 187,318 | |||||||||
Multi–family mortgage loans | 478,057 | 480,585 | 472,432 | 480,349 | 453,720 | ||||||||||||||
Nonresidential real estate loans | 223,528 | 224,995 | 226,461 | 234,500 | 243,047 | ||||||||||||||
Construction and land loans | 1,322 | 1,442 | 1,404 | 1,885 | 2,356 | ||||||||||||||
Commercial loans | 80,216 | 61,344 | 64,953 | 66,882 | 53,962 | ||||||||||||||
Commercial leases | 221,622 | 225,676 | 219,988 | 217,143 | 203,563 | ||||||||||||||
Consumer loans | 1,927 | 1,768 | 1,747 | 2,051 | 2,458 | ||||||||||||||
1,170,796 | 1,165,956 | 1,163,895 | 1,183,147 | 1,146,424 | |||||||||||||||
Net deferred loan origination costs | 1,583 | 1,521 | 1,319 | 1,199 | 1,069 | ||||||||||||||
Allowance for loan losses | (10,081 | ) | (10,810 | ) | (11,576 | ) | (11,990 | ) | (13,051 | ) | |||||||||
Loans, net | $ | 1,162,298 | $ | 1,156,667 | $ | 1,153,638 | $ | 1,172,356 | $ | 1,134,442 | |||||||||
LOAN ORIGINATIONS (1) | |||||||||||||||||||
One–to–four family residential real estate loans | $ | 3,267 | $ | 3,350 | $ | 2,388 | $ | 4,119 | $ | 5,584 | |||||||||
Multi–family mortgage loans | 16,302 | 27,822 | 13,417 | 47,929 | 26,342 | ||||||||||||||
Nonresidential real estate loans | 4,025 | 5,564 | 4,045 | 7,024 | 3,477 | ||||||||||||||
Commercial loans | 56,950 | 46,683 | 45,051 | 52,810 | 47,332 | ||||||||||||||
Commercial leases | 26,866 | 39,645 | 28,920 | 38,454 | 32,743 | ||||||||||||||
Consumer loans | 711 | 838 | 780 | 803 | 798 | ||||||||||||||
$ | 108,121 | $ | 123,902 | $ | 94,601 | $ | 151,139 | $ | 116,276 | ||||||||||
LOAN PAYMENTS and PAYOFFS (2) | |||||||||||||||||||
One–to–four family residential real estate loans | $ | 9,963 | $ | 9,057 | $ | 6,007 | $ | 10,489 | $ | 10,735 | |||||||||
Multi–family mortgage loans | 18,939 | 19,880 | 18,303 | 21,284 | 12,299 | ||||||||||||||
Nonresidential real estate loans | 5,523 | 6,702 | 10,593 | 13,637 | 8,409 | ||||||||||||||
Construction and land loans | 232 | 50 | 551 | 176 | 402 | ||||||||||||||
Commercial loans | 38,079 | 50,298 | 46,822 | 39,955 | 42,153 | ||||||||||||||
Commercial leases | 28,104 | 33,757 | 28,052 | 22,923 | 31,354 | ||||||||||||||
Consumer loans | 738 | 749 | 830 | 895 | 902 | ||||||||||||||
$ | 101,578 | $ | 120,493 | $ | 111,158 | $ | 109,359 | $ | 106,254 | ||||||||||
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2) | |||||||||||||||||||
One–to–four family residential real estate loans | $ | 1,424 | $ | 571 | $ | 1,502 | $ | 1,151 | $ | 927 | |||||||||
Multi–family mortgage loans | 7,666 | 3,226 | 4,566 | 5,000 | 829 | ||||||||||||||
Nonresidential real estate loans | 335 | 2,896 | 2,823 | 5,869 | 2,135 | ||||||||||||||
Construction and land loans | 24 | 16 | 510 | 141 | 263 | ||||||||||||||
Commercial loans | 4,120 | 5,268 | 4,772 | 3,149 | 2,569 | ||||||||||||||
$ | 13,569 | $ | 11,977 | $ | 14,173 | $ | 15,310 | $ | 6,723 | ||||||||||
(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 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
CREDIT QUALITY: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Nonaccrual loans (1): | |||||||||||||||||||
One–to–four family residential real estate loans | $ | 2,952 | $ | 3,468 | $ | 3,816 | $ | 4,408 | $ | 4,277 | |||||||||
Multi–family mortgage loans | 1,399 | 2,382 | 3,441 | 4,481 | 6,223 | ||||||||||||||
Nonresidential real estate loans | 2,263 | 2,732 | 5,931 | 3,245 | 4,545 | ||||||||||||||
Construction and land loans | — | — | — | — | 120 | ||||||||||||||
Commercial loans | 75 | 75 | 183 | 76 | 82 | ||||||||||||||
Consumer loans | — | 1 | — | 3 | 1 | ||||||||||||||
Nonaccrual loans | 6,689 | 8,658 | 13,371 | 12,213 | 15,248 | ||||||||||||||
Loans past due over 90 days, still accruing | — | — | — | — | — | ||||||||||||||
Other real estate owned: | |||||||||||||||||||
One–to–four family residential real estate loans | 325 | 471 | 677 | 806 | 945 | ||||||||||||||
Multi–family real estate | 1,474 | 2,018 | 2,242 | 2,307 | 1,502 | ||||||||||||||
Nonresidential real estate | 1,289 | 1,240 | 1,169 | 885 | 1,448 | ||||||||||||||
Land | 51 | 51 | 135 | 135 | 181 | ||||||||||||||
Other real estate owned | 3,139 | 3,780 | 4,223 | 4,133 | 4,076 | ||||||||||||||
Nonperforming assets (excluding purchased other real estate owned) | 9,828 | 12,438 | 17,594 | 16,346 | 19,324 | ||||||||||||||
Purchased other real estate owned: | |||||||||||||||||||
One–to–four family residential real estate | — | — | 325 | 457 | 132 | ||||||||||||||
Land | 1,670 | 1,759 | 1,768 | 1,768 | 1,782 | ||||||||||||||
Purchased other real estate owned | 1,670 | 1,759 | 2,093 | 2,225 | 1,914 | ||||||||||||||
Nonperforming assets | $ | 11,498 | $ | 14,197 | $ | 19,687 | $ | 18,571 | $ | 21,238 | |||||||||
Asset Quality Ratios | |||||||||||||||||||
Nonperforming assets to total assets | 0.80 | % | 0.99 | % | 1.36 | % | 1.27 | % | 1.49 | % | |||||||||
Nonperforming assets to total assets (2) | 0.69 | 0.86 | 1.22 | 1.11 | 1.35 | ||||||||||||||
Nonaccrual loans to total loans | 0.57 | 0.74 | 1.15 | 1.03 | 1.33 | ||||||||||||||
Allowance for loan losses to nonperforming loans | 150.71 | 124.86 | 86.58 | 98.17 | 85.59 | ||||||||||||||
(1) | Purchased impaired loans are combined with nonaccrual loans in the above table. |
(2) | Asset quality ratios exclude 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 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
SUBSTANDARD PERFORMING LOANS | |||||||||||||||||||
One–to–four family residential real estate loans | $ | 429 | $ | 1,056 | $ | 878 | $ | 2,010 | $ | 2,036 | |||||||||
Multi–family mortgage loans | 6,254 | 4,849 | 5,897 | 3,949 | 4,346 | ||||||||||||||
Nonresidential real estate loans | 5,259 | 4,506 | 4,973 | 6,698 | 6,805 | ||||||||||||||
Construction and land loans | 819 | 730 | 658 | 613 | 796 | ||||||||||||||
Commercial loans | 703 | 571 | 516 | 705 | 845 | ||||||||||||||
$ | 13,464 | $ | 11,712 | $ | 12,922 | $ | 13,975 | $ | 14,828 | ||||||||||
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE | |||||||||||||||||||
30 – 59 days past due | $ | 63 | $ | 138 | $ | 7,874 | $ | 4,265 | $ | 2,006 | |||||||||
60 – 89 days past due | 816 | 648 | 255 | 1,167 | 802 | ||||||||||||||
Matured Loans | 224 | 38 | 491 | 553 | 4,306 | ||||||||||||||
$ | 1,103 | $ | 824 | $ | 8,620 | $ | 5,985 | $ | 7,114 | ||||||||||
ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||
Beginning balance | $ | 10,810 | $ | 11,576 | $ | 11,990 | $ | 13,051 | $ | 14,452 | |||||||||
Charge offs: | |||||||||||||||||||
One–to–four family residential real estate loans | (125 | ) | (99 | ) | (103 | ) | (229 | ) | (298 | ) | |||||||||
Multi–family mortgage loans | (9 | ) | (161 | ) | (19 | ) | (449 | ) | (97 | ) | |||||||||
Nonresidential real estate loans | (26 | ) | (252 | ) | (11 | ) | (266 | ) | (695 | ) | |||||||||
Commercial loans | — | — | (98 | ) | (23 | ) | (78 | ) | |||||||||||
Commercial leases | — | — | — | — | (8 | ) | |||||||||||||
Consumer loans | (3 | ) | (4 | ) | (4 | ) | (2 | ) | — | ||||||||||
(163 | ) | (516 | ) | (235 | ) | (969 | ) | (1,176 | ) | ||||||||||
Recoveries: | |||||||||||||||||||
One–to–four family residential real estate loans | 16 | 219 | 60 | 284 | 26 | ||||||||||||||
Multi–family mortgage loans | 169 | 4 | 4 | 69 | 11 | ||||||||||||||
Nonresidential real estate loans | 24 | 9 | 16 | 23 | 116 | ||||||||||||||
Construction and land loans | 38 | — | 6 | 90 | 29 | ||||||||||||||
Commercial loans | 143 | 6 | 457 | 198 | 1,005 | ||||||||||||||
Commercial leases | — | — | 1 | — | — | ||||||||||||||
Consumer loans | — | — | 1 | — | 1 | ||||||||||||||
390 | 238 | 545 | 664 | 1,188 | |||||||||||||||
Net (charge–offs) recoveries | 227 | (278 | ) | 310 | (305 | ) | 12 | ||||||||||||
Recovery of loan losses | (956 | ) | (488 | ) | (724 | ) | (756 | ) | (1,413 | ) | |||||||||
Ending balance | $ | 10,081 | $ | 10,810 | $ | 11,576 | $ | 11,990 | $ | 13,051 | |||||||||
Allowance for loan losses to total loans | 0.86 | % | 0.93 | % | 0.99 | % | 1.01 | % | 1.14 | % | |||||||||
Net charge–off (recovery) ratio (1) | (0.08 | ) | 0.10 | (0.11 | ) | 0.11 | — | ||||||||||||
(1) | Annualized |
Page 6
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2015 | 2014 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
DEPOSITS | |||||||||||||||||||
Noninterest–bearing demand | $ | 233,192 | $ | 190,411 | $ | 131,072 | $ | 134,129 | $ | 131,121 | |||||||||
Savings deposits | 152,585 | 156,436 | 157,892 | 154,532 | 152,545 | ||||||||||||||
Money market accounts | 327,080 | 334,898 | 339,329 | 338,246 | 345,185 | ||||||||||||||
Interest–bearing NOW accounts | 245,780 | 290,670 | 343,949 | 351,947 | 345,816 | ||||||||||||||
Certificates of deposits | 222,897 | 227,811 | 230,522 | 232,859 | 243,635 | ||||||||||||||
$ | 1,181,534 | $ | 1,200,226 | $ | 1,202,764 | $ | 1,211,713 | $ | 1,218,302 | ||||||||||
SELECTED AVERAGE BALANCES | |||||||||||||||||||
Total average assets | $ | 1,434,749 | $ | 1,449,740 | $ | 1,448,335 | $ | 1,421,804 | $ | 1,427,550 | |||||||||
Total average interest–earning assets | 1,336,412 | 1,347,810 | 1,344,592 | 1,350,815 | 1,355,436 | ||||||||||||||
Average loans | 1,164,251 | 1,150,417 | 1,164,107 | 1,144,281 | 1,127,735 | ||||||||||||||
Average securities | 102,578 | 107,697 | 121,958 | 116,234 | 114,805 | ||||||||||||||
Average stock in FHLB | 6,257 | 6,257 | 6,257 | 6,257 | 6,257 | ||||||||||||||
Average other interest–earning assets | 63,326 | 83,439 | 52,270 | 84,043 | 106,639 | ||||||||||||||
Total average interest–bearing liabilities | 990,733 | 1,025,544 | 1,077,712 | 1,084,840 | 1,098,727 | ||||||||||||||
Average interest–bearing deposits | 981,633 | 1,022,661 | 1,074,552 | 1,081,353 | 1,095,542 | ||||||||||||||
Average borrowings | 9,100 | 2,883 | 3,160 | 3,487 | 3,185 | ||||||||||||||
Average stockholders’ equity | 213,061 | 215,113 | 218,459 | 183,584 | 179,929 | ||||||||||||||
SELECTED YIELDS AND COST OF FUNDS (1): | |||||||||||||||||||
Total average interest–earning assets | 3.61 | % | 3.63 | % | 3.68 | % | 3.65 | % | 3.62 | % | |||||||||
Average loans | 4.02 | 4.13 | 4.12 | 4.17 | 4.22 | ||||||||||||||
Average securities | 1.03 | 0.96 | 1.09 | 0.98 | 0.98 | ||||||||||||||
Average other interest–earning assets | 0.50 | 0.45 | 0.42 | 0.40 | 0.36 | ||||||||||||||
Total average interest–bearing liabilities | 0.28 | 0.27 | 0.26 | 0.26 | 0.27 | ||||||||||||||
Average interest–bearing deposits | 0.28 | 0.27 | 0.26 | 0.26 | 0.27 | ||||||||||||||
Average borrowings | 0.17 | 0.28 | 0.26 | 0.34 | 0.25 | ||||||||||||||
Net interest rate spread | 3.33 | 3.36 | 3.42 | 3.39 | 3.35 | ||||||||||||||
Net interest margin | 3.40 | 3.42 | 3.48 | 3.44 | 3.40 | ||||||||||||||
Page 7
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2015 | 2014 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
CAPITAL RATIOS (1) | |||||||||||||||||||
BankFinancial Corporation | |||||||||||||||||||
Equity to total assets (end of period) | 14.89 | % | 14.71 | % | 15.07 | % | 14.75 | % | 12.76 | % | |||||||||
Tangible equity to tangible total assets (end of period) | 14.80 | 14.61 | 14.97 | 14.64 | 12.63 | ||||||||||||||
Risk–based total capital ratio | 19.10 | 18.40 | 18.40 | 18.31 | 17.65 | ||||||||||||||
Risk–based tier 1 capital ratio | 18.14 | 17.39 | 17.35 | 17.21 | 16.45 | ||||||||||||||
Tier 1 leverage ratio | 13.41 | 13.08 | 13.43 | 13.04 | 12.62 | ||||||||||||||
Tier 1 capital | $ | 189,216 | $ | 186,337 | $ | 190,970 | $ | 187,290 | $ | 178,904 | |||||||||
BankFinancial FSB | |||||||||||||||||||
Risk–based total capital ratio | 16.22 | % | 15.54 | % | 14.95 | % | 16.21 | % | 15.48 | % | |||||||||
Risk–based tier 1 capital ratio | 15.25 | 14.53 | 13.89 | 15.11 | 14.28 | ||||||||||||||
Tier 1 leverage ratio | 11.27 | 10.92 | 10.74 | 11.45 | 10.95 | ||||||||||||||
Tier 1 capital | $ | 159,118 | $ | 155,586 | $ | 152,777 | $ | 164,420 | $ | 155,208 | |||||||||
COMMON STOCK AND DIVIDENDS | |||||||||||||||||||
Stock Prices: | |||||||||||||||||||
Close | $ | 12.43 | $ | 11.78 | $ | 13.14 | $ | 11.86 | $ | 10.55 | |||||||||
High | 12.48 | 13.62 | 13.16 | 12.17 | 10.69 | ||||||||||||||
Low | 11.57 | 11.47 | 11.07 | 10.24 | 10.43 | ||||||||||||||
Common shares outstanding | 20,501,966 | 20,501,966 | 21,101,966 | 21,101,966 | 21,101,966 | ||||||||||||||
Book value per share | $ | 10.39 | $ | 10.33 | $ | 10.31 | $ | 10.24 | $ | 8.59 | |||||||||
Tangible book value per share | $ | 10.32 | $ | 10.25 | $ | 10.23 | $ | 10.15 | $ | 8.50 | |||||||||
Cash dividends declared on common stock | $ | 0.08 | $ | 0.04 | $ | 0.04 | $ | 0.03 | $ | 0.04 | |||||||||
Dividend payout ratio | 69.82 | % | 37.95 | % | 42.50 | % | 1.83 | % | 23.50 | % | |||||||||
Stock repurchases | $ | — | $ | 7,388 | $ | — | $ | — | $ | — | |||||||||
Stock repurchases – shares | — | 600,000 | — | — | — | ||||||||||||||
EARNINGS PER SHARE COMPUTATIONS | |||||||||||||||||||
Net income | $ | 2,349 | $ | 2,224 | $ | 1,986 | $ | 34,678 | $ | 3,590 | |||||||||
Average common shares outstanding | 20,501,966 | 20,811,856 | 21,101,966 | 21,101,966 | 21,101,966 | ||||||||||||||
Less: Unearned ESOP shares | (768,327 | ) | (792,816 | ) | (825,348 | ) | (841,526 | ) | (866,193 | ) | |||||||||
Unvested restricted stock shares | (7,932 | ) | (9,682 | ) | (16,822 | ) | (16,822 | ) | (16,822 | ) | |||||||||
Weighted average common shares outstanding | 19,725,707 | 20,009,358 | 20,259,796 | 20,243,618 | 20,218,951 | ||||||||||||||
Plus: Dilutive common shares equivalents | 5,595 | 4,215 | 5,888 | 9,755 | 16,456 | ||||||||||||||
Weighted average dilutive common shares outstanding | 19,731,302 | 20,013,573 | 20,265,684 | 20,253,373 | 20,235,407 | ||||||||||||||
Basic earnings per common share | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 1.72 | $ | 0.17 | |||||||||
Diluted earnings per common share | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 1.72 | $ | 0.17 | |||||||||
(1) All Capital amounts and ratios prior to March 31, 2015 were calculated Pre-Basel III requirements.
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 equity-based compensation expense, 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, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Pre–tax pre–provision earnings from core operations | |||||||||||||||
Income before income taxes | $ | 3,881 | $ | 3,626 | $ | 10,801 | $ | 6,014 | |||||||
Provision for (recovery of) loan losses | (956 | ) | (1,413 | ) | (2,168 | ) | 20 | ||||||||
2,925 | 2,213 | 8,633 | 6,034 | ||||||||||||
Adjustments: | |||||||||||||||
Equity-based compensation | 297 | 18 | 332 | 52 | |||||||||||
Nonperforming asset management | 244 | 418 | 442 | 619 | |||||||||||
Loss (gain) on sale of other real estate owned | (11 | ) | 52 | (91 | ) | (40 | ) | ||||||||
Valuation adjustments of other real estate owned | 231 | 315 | 467 | 392 | |||||||||||
Operations of other real estate owned | 114 | 127 | 404 | 808 | |||||||||||
Adjustments | 875 | 930 | 1,554 | 1,831 | |||||||||||
Pre–tax pre–provision earnings from core operations | $ | 3,800 | $ | 3,143 | $ | 10,187 | $ | 7,865 | |||||||
Pre–tax pre–provision earnings from core operations to average total assets (1) | 1.06 | % | 0.88 | % | 0.94 | % | 0.73 | % | |||||||
(1) | Annualized |
Page 10
BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share) - (Unaudited)
FOR THE LATEST FIVE QUARTERS
2015 | 2014 | ||||||||||||||||||
IIIQ | IIQ | IQ | IVQ | IIIQ | |||||||||||||||
Pre–tax pre–provision earnings from core operations | |||||||||||||||||||
Income before income taxes | $ | 3,881 | $ | 3,648 | $ | 3,272 | $ | 3,283 | $ | 3,626 | |||||||||
Provision for (recovery of) loan losses | (956 | ) | (488 | ) | (724 | ) | (756 | ) | (1,413 | ) | |||||||||
2,925 | 3,160 | 2,548 | 2,527 | 2,213 | |||||||||||||||
Adjustments: | |||||||||||||||||||
Equity-based compensation | 297 | 17 | 17 | 18 | 18 | ||||||||||||||
Nonperforming asset management | 244 | 108 | 91 | 219 | 418 | ||||||||||||||
Loss (gain) on sale of other real estate owned | (11 | ) | (22 | ) | (58 | ) | 75 | 52 | |||||||||||
Valuation adjustments of other real estate owned | 231 | 23 | 213 | 46 | 315 | ||||||||||||||
Operations of other real estate owned | 114 | 91 | 199 | 127 | 127 | ||||||||||||||
875 | 217 | 462 | 485 | 930 | |||||||||||||||
Pre–tax pre–provision earnings from core operations | $ | 3,800 | $ | 3,377 | $ | 3,010 | $ | 3,012 | $ | 3,143 | |||||||||
Pre–tax pre–provision earnings from core operations to average total assets (1) | 1.06 | % | 0.93 | % | 0.83 | % | 0.85 | % | 0.88 | % | |||||||||
(1) | Annualized |
Page 11