8-K


SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
 
FORM 8-K 
 
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 27, 2016
 
 
 
 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 2016 results in a conference call and webcast for stockholders and analysts on Friday, April 29, 2016 at 9:30 a.m. Chicago, Illinois Time.
The conference call may be accessed by calling (844) 413-1780 using participant passcode 96129871. The conference call will be simultaneously webcast at www.bankfinancial.com, under Investor Relations.
Item 8.01.
Other Events
On April 27, 2016, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 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, 2016. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.
Item 9.01.
Financial Statements and Exhibits.
(a)
Not Applicable.
(b)
Not Applicable.
(c)
Not Applicable.
(d)
Exhibits.

Exhibit No.    Description
99.1    Press Release dated April 27, 2016
99.2    Quarterly Financial and Statistical Supplement





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
 
 
 
BANKFINANCIAL CORPORATION
 
 
 
 
 
 
 
Dated:
April 27, 2016
 
By:
/s/ F. Morgan Gasior
 
 
 
 
 
F. Morgan Gasior
 
 
 
 
 
Chairman of the Board, Chief Executive Officer and President







EXHIBIT INDEX


Exhibit No.    Description
99.1    Press Release dated April 27, 2016
99.2    Quarterly Financial and Statistical Supplement



Exhibit


Exhibit 99.1

 
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the First Quarter 2016 and
Will Host Conference Call and Webcast on April 29, 2016
Burr Ridge, Illinois – (April 27, 2016) BankFinancial Corporation (Nasdaq – BFIN) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 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 $1.9 million, or $0.10 per common share, for the three months ended March 31, 2016, compared to $2.0 million, or $0.10 per common share, for the three months ended March 31, 2015. At March 31, 2016, BankFinancial had total assets of $1.512 billion, total loans of $1.232 billion, total deposits of $1.265 billion and stockholders' equity of $209 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 2016 results in a conference call and webcast for stockholders and analysts on Friday, April 29, 2016 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 96129871. 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, May 13, 2016 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
President – Marketing & Sales
BankFinancial F.S.B.
Telephone: 630-242-7234


Exhibit

Exhibit 99.2



BANKFINANCIAL CORPORATION
FIRST QUARTER 2016
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)


 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (1)
0.50
%
 
0.58
%
 
0.65
%
 
0.61
%
 
0.55
%
Return on equity (ratio of net income to average equity) (1)
3.59

 
3.96

 
4.41

 
4.14

 
3.64

Net interest rate spread (1)
3.30

 
3.35

 
3.33

 
3.36

 
3.42

Net interest margin (1)
3.39

 
3.43

 
3.40

 
3.42

 
3.48

Efficiency ratio
80.98

 
83.16

 
77.77

 
76.04

 
80.49

Noninterest expense to average total assets (1)
2.89

 
3.08

 
2.85

 
2.77

 
2.90

Average interest–earning assets to average interest–bearing liabilities
136.26

 
138.91

 
134.89

 
131.42

 
124.76

Number of full service offices
19

 
19

 
19

 
19

 
19

Employees (full time equivalents)
255

 
251

 
264

 
264

 
267

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
10,238

 
$
13,192

 
$
8,809

 
$
10,591

 
$
10,211

Interest-bearing deposits in other financial institutions
55,705

 
46,185

 
52,661

 
66,835

 
56,043

Securities, at fair value
111,386

 
114,753

 
104,242

 
99,137

 
114,039

Loans receivable, net
1,232,485

 
1,232,257

 
1,162,298

 
1,156,667

 
1,153,638

Other real estate owned, net
5,629

 
7,011

 
4,809

 
5,539

 
6,316

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

 
6,257

 
6,257

 
6,257

 
6,257

Premises and equipment, net
32,308

 
32,726

 
33,063

 
33,502

 
33,943

Intangible assets
1,169

 
1,305

 
1,441

 
1,577

 
1,713

Bank owned life insurance
22,438

 
22,387

 
22,335

 
22,287

 
22,242

Deferred taxes
25,641

 
26,695

 
27,733

 
29,145

 
30,437

Other assets
8,552

 
9,675

 
7,775

 
8,201

 
8,530

Total assets
$
1,511,808

 
$
1,512,443

 
$
1,431,423

 
$
1,439,738

 
$
1,443,369

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,264,689

 
$
1,212,919

 
$
1,181,534

 
$
1,200,226

 
$
1,202,764

Borrowings
17,621

 
64,318

 
18,048

 
3,039

 
3,217

Other liabilities
20,010

 
22,842

 
18,767

 
24,725

 
19,842

Total liabilities
1,302,320

 
1,300,079

 
1,218,349

 
1,227,990

 
1,225,823

Stockholders’ equity
209,488

 
212,364

 
213,074

 
211,748

 
217,546

Total liabilities and stockholders’ equity
$
1,511,808

 
$
1,512,443

 
$
1,431,423

 
$
1,439,738

 
$
1,443,369

(1)Annualized


Page 2

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


 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
12,759

 
$
12,411

 
$
12,147

 
$
12,193

 
$
12,211

Total interest expense
856

 
738

 
699

 
691

 
686

Net interest income before recovery
11,903

 
11,673

 
11,448

 
11,502

 
11,525

Recovery of loan losses
(490
)
 
(1,038
)
 
(956
)
 
(488
)
 
(724
)
Net interest income
12,393

 
12,711

 
12,404

 
11,990

 
12,249

Noninterest income
1,594

 
1,757

 
1,709

 
1,689

 
1,536

Noninterest expense
10,930

 
11,169

 
10,232

 
10,031

 
10,513

Income before income tax
3,057

 
3,299

 
3,881

 
3,648

 
3,272

Income tax expense
1,153

 
1,183

 
1,532

 
1,424

 
1,286

Net income
$
1,904

 
$
2,116

 
$
2,349

 
$
2,224

 
$
1,986

Basic earnings per common share
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

 
$
0.10

Diluted earnings per common share
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

 
$
0.10

 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
567

 
$
603

 
$
648

 
$
532

 
$
465

Other fee income
495

 
505

 
502

 
601

 
535

Insurance commissions and annuities income
55

 
169

 
68

 
86

 
63

Gain on sales of loans, net
18

 
10

 
37

 
28

 
27

Gain on sale of securities
46

 

 

 

 

Loss on disposition of premises and equipment

 

 

 
(1
)
 

Loan servicing fees
73

 
83

 
85

 
96

 
90

Amortization of servicing assets
(28
)
 
(32
)
 
(35
)
 
(35
)
 
(35
)
Recovery (impairment) of servicing assets
(3
)
 
(1
)
 
(15
)
 
3

 
10

Earnings on bank owned life insurance
51

 
52

 
48

 
45

 
49

Trust income
160

 
183

 
172

 
183

 
174

Other
160

 
185

 
199

 
151

 
158

Total noninterest income
$
1,594

 
$
1,757

 
$
1,709

 
$
1,689

 
$
1,536

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
5,993

 
$
6,034

 
$
5,329

 
$
5,278

 
$
5,581

Office occupancy and equipment
1,647

 
1,620

 
1,537

 
1,670

 
1,695

Advertising and public relations
222

 
208

 
212

 
227

 
344

Information technology
724

 
687

 
686

 
657

 
639

Supplies, telephone, and postage
376

 
397

 
393

 
385

 
411

Amortization of intangibles
136

 
136

 
136

 
136

 
142

Nonperforming asset management
84

 
239

 
244

 
108

 
90

Loss (gain) on sales of other real estate owned
38

 
33

 
(11
)
 
(22
)
 
(58
)
Valuation adjustments of other real estate owned
119

 
81

 
231

 
23

 
213

Operations of other real estate owned
219

 
169

 
114

 
91

 
199

FDIC insurance premiums
217

 
205

 
202

 
262

 
235

Other
1,155

 
1,360

 
1,159

 
1,216

 
1,022

Total noninterest expense
$
10,930

 
$
11,169

 
$
10,232

 
$
10,031

 
$
10,513

 
 
 
 

Page 3

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


 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
154,588

 
$
159,501

 
$
164,124

 
$
170,146

 
$
176,910

Multi–family mortgage loans
513,450

 
506,026

 
478,057

 
480,585

 
472,432

Nonresidential real estate loans
219,339

 
226,735

 
223,528

 
224,995

 
226,461

Construction and land loans
1,799

 
1,313

 
1,322

 
1,442

 
1,404

Commercial loans
76,325

 
79,516

 
80,216

 
61,344

 
64,953

Commercial leases
272,849

 
265,405

 
221,622

 
225,676

 
219,988

Consumer loans
1,890

 
1,831

 
1,927

 
1,768

 
1,747

 
1,240,240

 
1,240,327

 
1,170,796

 
1,165,956

 
1,163,895

Net deferred loan origination costs
1,661

 
1,621

 
1,583

 
1,521

 
1,319

Allowance for loan losses
(9,416
)
 
(9,691
)
 
(10,081
)
 
(10,810
)
 
(11,576
)
Loans, net
$
1,232,485

 
$
1,232,257

 
$
1,162,298

 
$
1,156,667

 
$
1,153,638

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
1,637

 
$
2,657

 
$
3,267

 
$
3,350

 
$
2,388

Multi–family mortgage loans
24,599

 
43,110

 
16,302

 
27,822

 
13,417

Nonresidential real estate loans
4,788

 
20,408

 
4,025

 
5,564

 
4,045

Construction and land loans
198

 

 

 

 

Commercial loans
35,771

 
44,293

 
56,950

 
46,683

 
45,051

Commercial leases
39,303

 
71,201

 
26,866

 
39,645

 
28,920

Consumer loans
588

 
725

 
711

 
838

 
780

 
$
106,884

 
$
182,394

 
$
108,121

 
$
123,902

 
$
94,601

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
6,383

 
$
7,471

 
$
9,963

 
$
9,057

 
$
6,007

Multi–family mortgage loans
17,082

 
13,559

 
18,939

 
19,880

 
18,303

Nonresidential real estate loans
11,878

 
12,748

 
5,523

 
6,702

 
10,593

Construction and land loans
57

 
41

 
232

 
50

 
551

Commercial loans
39,030

 
45,460

 
38,079

 
50,298

 
46,822

Commercial leases
31,552

 
26,353

 
28,104

 
33,757

 
28,052

Consumer loans
664

 
701

 
738

 
749

 
830

 
$
106,646

 
$
106,333

 
$
101,578

 
$
120,493

 
$
111,158

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2)
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
441

 
$
363

 
$
1,424

 
$
571

 
$
1,502

Multi–family mortgage loans
5,142

 
2,199

 
7,666

 
3,226

 
4,566

Nonresidential real estate loans
409

 
784

 
335

 
2,896

 
2,823

Construction and land loans
24

 
8

 
24

 
16

 
510

Commercial loans
7,861

 
4,873

 
4,120

 
5,268

 
4,772

Commercial leases
45

 

 

 

 

 
$
13,922

 
$
8,227

 
$
13,569

 
$
11,977

 
$
14,173


(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)


 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans (1):
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
3,370

 
$
2,455

 
$
2,952

 
$
3,468

 
$
3,816

Multi–family mortgage loans
953

 
821

 
1,399

 
2,382

 
3,441

Nonresidential real estate loans
295

 
296

 
2,263

 
2,732

 
5,931

Construction and land loans
803

 

 

 

 

Commercial loans

 

 
75

 
75

 
183

Consumer loans

 

 

 
1

 

Nonaccrual loans
5,421

 
3,572

 
6,689

 
8,658

 
13,371

 
 
 
 
 
 
 
 
 
 
Loans past due over 90 days, still accruing

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Other real estate owned (2):
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
2,619

 
2,621

 
325

 
471

 
1,002

Multi–family real estate
737

 
951

 
1,474

 
2,018

 
2,242

Nonresidential real estate
1,135

 
1,747

 
1,289

 
1,240

 
1,169

Land (3)
1,138

 
1,692

 
1,721

 
1,810

 
1,903

Other real estate owned
5,629

 
7,011

 
4,809

 
5,539

 
6,316

 
 
 
 
 
 
 
 
 
 
Nonperforming assets
$
11,050

 
$
10,583

 
$
11,498

 
$
14,197

 
$
19,687

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
0.73
%
 
0.70
%
 
0.80
%
 
0.99
%
 
1.36
%
Nonaccrual loans to total loans
0.44

 
0.29

 
0.57

 
0.74

 
1.15

Allowance for loan losses to nonperforming loans
173.69

 
271.30

 
150.71

 
124.86

 
86.58


(1)
Purchased impaired loans are combined with nonaccrual loans in the above table.
(2)
Other real estate owned acquired from the Downers Grove National Bank merger are included in the above table.
(3)
Other real estate owned (land) acquired from the Downers Grove National Bank merger totaled $1.1 million at March 31, 2016, $1.7 million at December 31, 2015 and September 30, 2015, and $1.8 million at June 30, 2015 and March 31, 2015.


Page 5

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


 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
SUBSTANDARD PERFORMING LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
440

 
$
847

 
$
429

 
$
1,056

 
$
878

Multi–family mortgage loans
3,347

 
5,167

 
6,254

 
4,849

 
5,897

Nonresidential real estate loans
4,981

 
4,981

 
5,259

 
4,506

 
4,973

Construction and land loans

 
842

 
819

 
730

 
658

Commercial loans
137

 
614

 
703

 
571

 
516

 
$
8,905

 
$
12,451

 
$
13,464

 
$
11,712

 
$
12,922

 
 
 
 
 
 
 
 
 
 
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
30 – 59 days past due
$
3,012

 
$
2,036

 
$
63

 
$
138

 
$
7,874

60 – 89 days past due
30

 
926

 
816

 
648

 
255

Matured Loans
1,387

 
1,467

 
224

 
38

 
491

 
$
4,429

 
$
4,429

 
$
1,103

 
$
824

 
$
8,620

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
9,691

 
$
10,081

 
$
10,810

 
$
11,576

 
$
11,990

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(52
)
 
(59
)
 
(125
)
 
(99
)
 
(103
)
Multi–family mortgage loans
(45
)
 
(9
)
 
(9
)
 
(161
)
 
(19
)
Nonresidential real estate loans
(3
)
 
(102
)
 
(26
)
 
(252
)
 
(11
)
Commercial loans

 
(54
)
 

 

 
(98
)
Consumer loans
(16
)
 
(5
)
 
(3
)
 
(4
)
 
(4
)
 
(116
)
 
(229
)
 
(163
)
 
(516
)
 
(235
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
81

 
407

 
16

 
219

 
60

Multi–family mortgage loans
137

 
5

 
169

 
4

 
4

Nonresidential real estate loans

 
460

 
24

 
9

 
16

Construction and land loans
35

 

 
38

 

 
6

Commercial loans
77

 
5

 
143

 
6

 
457

Commercial leases

 

 

 

 
1

Consumer loans
1

 

 

 

 
1

 
331

 
877

 
390

 
238

 
545

Net (charge–offs) recoveries
215

 
648

 
227

 
(278
)
 
310

Recovery of loan losses
(490
)
 
(1,038
)
 
(956
)
 
(488
)
 
(724
)
Ending balance
$
9,416

 
$
9,691

 
$
10,081

 
$
10,810

 
$
11,576

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
0.76
 %
 
0.78
 %
 
0.86
 %
 
0.93
%
 
0.99
 %
Net charge–off (recovery) ratio (1)
(0.07
)
 
(0.22
)
 
(0.08
)
 
0.10

 
(0.11
)
(1)
Annualized


Page 6

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


 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
238,848

 
$
254,830

 
$
233,192

 
$
190,411

 
$
131,072

Savings deposits
161,554

 
156,752

 
152,585

 
156,436

 
157,892

Money market accounts
323,197

 
329,654

 
327,080

 
334,898

 
339,329

Interest–bearing NOW accounts
247,434

 
248,982

 
245,780

 
290,670

 
343,949

Certificates of deposits - retail
221,101

 
211,010

 
210,588

 
215,094

 
219,017

Certificates of deposits - wholesale
72,555

 
11,691

 
12,309

 
12,717

 
11,505

 
$
1,264,689

 
$
1,212,919

 
$
1,181,534

 
$
1,200,226

 
$
1,202,764

 
 
 
 
 
 
 
 
 
 
SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,513,683

 
$
1,448,857

 
$
1,434,749

 
$
1,449,740

 
$
1,448,335

Total average interest–earning assets
1,414,008

 
1,348,782

 
1,336,412

 
1,347,810

 
1,344,592

Average loans
1,238,270

 
1,175,723

 
1,164,251

 
1,150,417

 
1,164,107

Average securities
118,557

 
107,344

 
102,578

 
107,697

 
121,958

Average stock in FHLB
6,257

 
6,257

 
6,257

 
6,257

 
6,257

Average other interest–earning assets
50,924

 
59,458

 
63,326

 
83,439

 
52,270

Total average interest–bearing liabilities
1,037,730

 
971,000

 
990,733

 
1,025,544

 
1,077,712

Average interest–bearing deposits
962,823

 
951,631

 
981,633

 
1,022,661

 
1,074,552

Average borrowings
74,907

 
19,369

 
9,100

 
2,883

 
3,160

Average stockholders’ equity
212,322

 
213,858

 
213,061

 
215,113

 
218,459

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.63
%
 
3.65
%
 
3.61
%
 
3.63
%
 
3.68
%
Average loans
4.01

 
4.06

 
4.02

 
4.13

 
4.12

Average securities
1.07

 
1.07

 
1.03

 
0.96

 
1.09

Average other interest–earning assets
0.69

 
0.51

 
0.50

 
0.45

 
0.42

Total average interest–bearing liabilities
0.33

 
0.30

 
0.28

 
0.27

 
0.26

Average interest–bearing deposits
0.33

 
0.30

 
0.28

 
0.27

 
0.26

Average borrowings
0.37

 
0.25

 
0.17

 
0.28

 
0.26

Net interest rate spread
3.30

 
3.35

 
3.33

 
3.36

 
3.42

Net interest margin
3.39

 
3.43

 
3.40

 
3.42

 
3.48

(1)     Annualized

Page 7

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


 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
13.86
%
 
14.04
%
 
14.89
%
 
14.71
%
 
15.07
%
Tangible equity to tangible total assets (end of period)
14.57

 
14.76

 
14.80

 
14.61

 
14.97

Risk–based total capital ratio
17.80

 
17.89

 
19.10

 
18.40

 
18.40

Common Tier 1 (CET1)
16.95

 
17.01

 
18.14

 
17.39

 
17.35

Risk–based tier 1 capital ratio
16.95

 
17.01

 
18.14

 
17.39

 
17.35

Tier 1 leverage ratio
12.53

 
13.26

 
13.41

 
13.08

 
13.43

Tier 1 capital
$
186,964

 
$
189,044

 
$
189,216

 
$
186,337

 
$
190,970

BankFinancial FSB
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
15.83
%
 
15.41
%
 
16.22
%
 
15.54
%
 
14.95
%
Common Tier 1 (CET1)
14.98

 
14.54

 
15.25

 
14.53

 
13.89

Risk–based tier 1 capital ratio
14.98

 
14.54

 
15.25

 
14.53

 
13.89

Tier 1 leverage ratio
11.08

 
11.33

 
11.27

 
10.92

 
10.74

Tier 1 capital
$
165,183

 
$
161,545

 
$
159,118

 
$
155,586

 
$
152,777

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
11.82

 
$
12.63

 
$
12.43

 
$
11.78

 
$
13.14

High
13.29

 
13.22

 
12.48

 
13.62

 
13.16

Low
11.42

 
12.10

 
11.57

 
11.47

 
11.07

Common shares outstanding
19,939,500

 
20,297,317

 
20,501,966

 
20,501,966

 
21,101,966

Book value per share
$
10.51

 
$
10.46

 
$
10.39

 
$
10.33

 
$
10.31

Tangible book value per share
$
10.45

 
$
10.40

 
$
10.32

 
$
10.25

 
$
10.23

Cash dividends declared on common stock
$
0.05

 
$
0.04

 
$
0.08

 
$
0.04

 
$
0.04

Dividend payout ratio
53.50
%
 
38.59
%
 
69.82
%
 
37.95
%
 
42.50
%
Stock repurchases
$
4,393

 
$
2,582

 
$

 
$
7,388

 
$

Stock repurchases – shares
357,817

 
204,649

 

 
600,000

 

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income
$
1,904

 
$
2,116

 
$
2,349

 
$
2,224

 
$
1,986

Average common shares outstanding
20,155,541

 
20,428,979

 
20,501,966

 
20,811,856

 
21,101,966

Less: Unearned ESOP shares
(719,109
)
 
(743,659
)
 
(768,327
)
 
(792,816
)
 
(825,348
)
Unvested restricted stock shares
(7,881
)
 
(7,932
)
 
(7,932
)
 
(9,682
)
 
(16,822
)
Weighted average common shares outstanding
19,428,551


19,677,388

 
19,725,707

 
20,009,358

 
20,259,796

Plus: Dilutive common shares equivalents
2,939

 
25,141

 
5,595

 
4,215

 
5,888

Weighted average dilutive common shares outstanding
19,431,490

 
19,702,529

 
19,731,302

 
20,013,573

 
20,265,684

Number of anti–dilutive stock options excluded from the diluted earnings per share calculation
1,752,156

 
536,459

 

 

 

Weighted average exercise price of anti–dilutive options
$
12.30

 
$
12.99

 
$

 
$

 
$

Basic earnings per common share
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

 
$
0.10

Diluted earnings per common share
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

 
$
0.10




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)

 
 
 
 
 
 
 
 
FOR THE LATEST FIVE QUARTERS
 
2016
 
2015
 
IQ
 
IVQ
 
IIIQ
 
IIQ
 
IQ
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
 
Income before income taxes
$
3,057

 
$
3,299

 
$
3,881

 
$
3,648

 
$
3,272

Recovery of loan losses
(490
)
 
(1,038
)
 
(956
)
 
(488
)
 
(724
)
 
2,567

 
2,261

 
2,925

 
3,160

 
2,548

Adjustments:
 
 
 
 
 
 
 
 
 
Equity-based compensation
377

 
306

 
297

 
17

 
17

Nonperforming asset management
84

 
239

 
244

 
108

 
91

Loss (gain) on sale of other real estate owned
38

 
33

 
(11
)
 
(22
)
 
(58
)
Valuation adjustments of other real estate owned
119

 
81

 
231

 
23

 
213

Operations of other real estate owned
219

 
169

 
114

 
91

 
199

 
837

 
828

 
875

 
217

 
462

Pre–tax pre–provision earnings from core operations
$
3,404

 
$
3,089

 
$
3,800

 
$
3,377

 
$
3,010

 
 
 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.90
%
 
0.85
%
 
1.06
%
 
0.93
%
 
0.83
%

(1)
Annualized


Page 10