Document


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): August 1, 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 second quarter 2016 results in a conference call and webcast for stockholders and analysts on Wednesday, August 3, 2016 at 9:30 a.m. Chicago, Illinois Time.
The conference call may be accessed by calling (844) 413-1780 using participant passcode 56328415. The conference call will be simultaneously webcast at www.bankfinancial.com, under Investor Relations.
Item 8.01.
Other Events
On August 1, 2016, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 and issued the Quarterly Financial and Statistical Supplement for the latest five quarters. The press release also reported earnings for the three months and six months ended June 30, 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 August 1, 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:
August 1, 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 August 1, 2016
99.2    Quarterly Financial and Statistical Supplement



Exhibit


Exhibit 99.1

 
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the Second Quarter 2016 and
Will Host Conference Call and Webcast on August 3, 2016
Burr Ridge, Illinois – (August 1, 2016) BankFinancial Corporation (Nasdaq – BFIN) filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 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 $831,000, or $0.04 per common share, for the three months ended June 30, 2016, compared to $2.2 million, or $0.11 per common share, for the three months ended June 30, 2015. BankFinancial reported net income of $2.7 million, or $0.14 per common shares, for the six months ended June 30, 2016, compared to $4.2 million, or $0.21 per common share, for the six months ended June 30, 2015. The decline in net income was due in part to a pre-tax charge off of $1.6 million resulting from our decision to sell three performing loans to a single borrower with a total carrying value of $16.2 million. At June 30, 2016, BankFinancial had total assets of $1.500 billion, total loans of $1.208 billion, total deposits of $1.269 billion and stockholders' equity of $207 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 second quarter 2016 results in a conference call and webcast for stockholders and analysts on Wednesday, August 3, 2016 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 56328415. 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, August 17, 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
SECOND 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
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (1)
0.22
%
 
0.50
%
 
0.58
%
 
0.65
%
 
0.61
%
Return on equity (ratio of net income to average equity) (1)
1.59

 
3.59

 
3.96

 
4.41

 
4.14

Net interest rate spread (1)
3.21

 
3.30

 
3.35

 
3.33

 
3.36

Net interest margin (1)
3.31

 
3.39

 
3.43

 
3.40

 
3.42

Efficiency ratio
79.80

 
80.98

 
83.16

 
77.77

 
76.04

Noninterest expense to average total assets (1)
2.78

 
2.89

 
3.08

 
2.85

 
2.77

Average interest–earning assets to average interest–bearing liabilities
136.17

 
136.26

 
138.91

 
134.89

 
131.42

Number of full service offices
19

 
19

 
19

 
19

 
19

Employees (full time equivalents)
253

 
255

 
251

 
264

 
264

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
11,509

 
$
10,238

 
$
13,192

 
$
8,809

 
$
10,591

Interest-bearing deposits in other financial institutions
74,048

 
55,705

 
46,185

 
52,661

 
66,835

Securities, at fair value
105,698

 
111,386

 
114,753

 
104,242

 
99,137

Loans receivable, net
1,207,553

 
1,232,485

 
1,232,257

 
1,162,298

 
1,156,667

Other real estate owned, net
5,373

 
5,629

 
7,011

 
4,809

 
5,539

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

 
6,257

 
6,257

 
6,257

 
6,257

Premises and equipment, net
32,021

 
32,308

 
32,726

 
33,063

 
33,502

Intangible assets
1,040

 
1,169

 
1,305

 
1,441

 
1,577

Bank owned life insurance
22,484

 
22,438

 
22,387

 
22,335

 
22,287

Deferred taxes
25,187

 
25,641

 
26,695

 
27,733

 
29,145

Other assets
8,661

 
8,552

 
9,675

 
7,775

 
8,201

Total assets
$
1,499,831

 
$
1,511,808

 
$
1,512,443

 
$
1,431,423

 
$
1,439,738

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,268,602

 
$
1,264,689

 
$
1,212,919

 
$
1,181,534

 
$
1,200,226

Borrowings
1,469

 
17,621

 
64,318

 
18,048

 
3,039

Other liabilities
23,053

 
20,010

 
22,842

 
18,767

 
24,725

Total liabilities
1,293,124

 
1,302,320

 
1,300,079

 
1,218,349

 
1,227,990

Stockholders’ equity
206,707

 
209,488

 
212,364

 
213,074

 
211,748

Total liabilities and stockholders’ equity
$
1,499,831

 
$
1,511,808

 
$
1,512,443

 
$
1,431,423

 
$
1,439,738

(1)Annualized


Page 2

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


 
2016
 
2015
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
12,581

 
$
12,759

 
$
12,411

 
$
12,147

 
$
12,193

Total interest expense
952

 
856

 
738

 
699

 
691

Net interest income before provision (recovery)
11,629

 
11,903

 
11,673

 
11,448

 
11,502

Provision for (recovery of) loan losses
1,315

 
(490
)
 
(1,038
)
 
(956
)
 
(488
)
Net interest income
10,314

 
12,393

 
12,711

 
12,404

 
11,990

Noninterest income
1,537

 
1,594

 
1,757

 
1,709

 
1,689

Noninterest expense
10,506

 
10,930

 
11,169

 
10,232

 
10,031

Income before income tax
1,345

 
3,057

 
3,299

 
3,881

 
3,648

Income tax expense
514

 
1,153

 
1,183

 
1,532

 
1,424

Net income
$
831

 
$
1,904

 
$
2,116

 
$
2,349

 
$
2,224

Basic earnings per common share
$
0.04

 
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

Diluted earnings per common share
$
0.04

 
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
541

 
$
567

 
$
603

 
$
648

 
$
532

Other fee income
505

 
495

 
505

 
502

 
601

Insurance commissions and annuities income
72

 
55

 
169

 
68

 
86

Gain on sales of loans, net
3

 
18

 
10

 
37

 
28

Gain on sale of securities

 
46

 

 

 

Loss on disposition of premises and equipment

 

 

 

 
(1
)
Loan servicing fees
75

 
73

 
83

 
85

 
96

Amortization of servicing assets
(40
)
 
(28
)
 
(32
)
 
(35
)
 
(35
)
Recovery (impairment) of servicing assets
3

 
(3
)
 
(1
)
 
(15
)
 
3

Earnings on bank owned life insurance
46

 
51

 
52

 
48

 
45

Trust income
165

 
160

 
183

 
172

 
183

Other
167

 
160

 
185

 
199

 
151

Total noninterest income
$
1,537

 
$
1,594

 
$
1,757

 
$
1,709

 
$
1,689

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
5,713

 
$
5,993

 
$
6,034

 
$
5,329

 
$
5,278

Office occupancy and equipment
1,635

 
1,647

 
1,620

 
1,537

 
1,670

Advertising and public relations
252

 
222

 
208

 
212

 
227

Information technology
699

 
724

 
687

 
686

 
657

Supplies, telephone, and postage
297

 
376

 
397

 
393

 
385

Amortization of intangibles
129

 
136

 
136

 
136

 
136

Nonperforming asset management
127

 
84

 
239

 
244

 
108

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

 
33

 
(11
)
 
(22
)
Valuation adjustments of other real estate owned
10

 
119

 
81

 
231

 
23

Operations of other real estate owned
177

 
219

 
169

 
114

 
91

FDIC insurance premiums
236

 
217

 
205

 
202

 
262

Other
1,269

 
1,155

 
1,360

 
1,159

 
1,216

Total noninterest expense
$
10,506

 
$
10,930

 
$
11,169

 
$
10,232

 
$
10,031

 
 
 
 

Page 3

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


 
2016
 
2015
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
147,876

 
$
154,588

 
$
159,501

 
$
164,124

 
$
170,146

Multi–family mortgage loans
504,158

 
513,450

 
506,026

 
478,057

 
480,585

Nonresidential real estate loans
191,685

 
219,339

 
226,735

 
223,528

 
224,995

Construction and land loans
1,767

 
1,799

 
1,313

 
1,322

 
1,442

Commercial loans
84,951

 
76,325

 
79,516

 
80,216

 
61,344

Commercial leases
282,629

 
272,849

 
265,405

 
221,622

 
225,676

Consumer loans
1,744

 
1,890

 
1,831

 
1,927

 
1,768

 
1,214,810

 
1,240,240

 
1,240,327

 
1,170,796

 
1,165,956

Net deferred loan origination costs
1,658

 
1,661

 
1,621

 
1,583

 
1,521

Allowance for loan losses
(8,915
)
 
(9,416
)
 
(9,691
)
 
(10,081
)
 
(10,810
)
Loans, net
$
1,207,553

 
$
1,232,485

 
$
1,232,257

 
$
1,162,298

 
$
1,156,667

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
2,279

 
$
1,637

 
$
2,657

 
$
3,267

 
$
3,350

Multi–family mortgage loans
18,017

 
24,385

 
43,110

 
16,302

 
27,822

Nonresidential real estate loans
3,587

 
5,002

 
20,408

 
4,025

 
5,564

Construction and land loans

 
198

 

 

 

Commercial loans
54,149

 
35,771

 
44,293

 
56,950

 
46,683

Commercial leases
54,633

 
39,303

 
71,201

 
26,866

 
39,645

Consumer loans
1,025

 
588

 
725

 
711

 
838

 
$
133,690

 
$
106,884

 
$
182,394

 
$
108,121

 
$
123,902

 

 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
8,500

 
$
6,413

 
$
7,471

 
$
9,963

 
$
9,057

Multi–family mortgage loans
27,188

 
17,082

 
13,559

 
18,939

 
19,880

Nonresidential real estate loans
30,024

 
11,878

 
12,748

 
5,523

 
6,702

Construction and land loans
33

 
57

 
41

 
232

 
50

Commercial loans
45,528

 
39,030

 
45,460

 
38,079

 
50,298

Commercial leases
48,774

 
31,552

 
26,353

 
28,104

 
33,757

Consumer loans
1,080

 
664

 
701

 
738

 
749

 
$
161,127

 
$
106,676

 
$
106,333

 
$
101,578

 
$
120,493

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2)
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
778

 
$
441

 
$
363

 
$
1,424

 
$
571

Multi–family mortgage loans
4,163

 
5,117

 
2,199

 
7,666

 
3,226

Nonresidential real estate loans
19,164

 
409

 
784

 
335

 
2,896

Construction and land loans

 
24

 
8

 
24

 
16

Commercial loans
12,243

 
7,861

 
4,873

 
4,120

 
5,268

Commercial leases
197

 
194

 

 

 

 
$
36,545

 
$
14,046

 
$
8,227

 
$
13,569

 
$
11,977


(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
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans (1):
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
2,625

 
$
3,370

 
$
2,455

 
$
2,952

 
$
3,468

Multi–family mortgage loans
1,021

 
953

 
821

 
1,399

 
2,382

Nonresidential real estate loans
754

 
295

 
296

 
2,263

 
2,732

Construction and land loans

 
803

 

 

 

Commercial loans

 

 

 
75

 
75

Consumer loans

 

 

 

 
1

Nonaccrual loans
4,400

 
5,421

 
3,572

 
6,689

 
8,658

 
 
 
 
 
 
 
 
 
 
Loans past due over 90 days, still accruing
828

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Other real estate owned (2):
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
2,433

 
2,619

 
2,621

 
325

 
471

Multi–family real estate
737

 
737

 
951

 
1,474

 
2,018

Nonresidential real estate
1,065

 
1,135

 
1,747

 
1,289

 
1,240

Land (3)
1,138

 
1,138

 
1,692

 
1,721

 
1,810

Other real estate owned
5,373

 
5,629

 
7,011

 
4,809

 
5,539

 
 
 
 
 
 
 
 
 
 
Nonperforming assets
$
10,601

 
$
11,050

 
$
10,583

 
$
11,498

 
$
14,197

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
0.71
%
 
0.73
%
 
0.70
%
 
0.80
%
 
0.99
%
Nonaccrual loans to total loans
0.43

 
0.44

 
0.29

 
0.57

 
0.74

Allowance for loan losses to nonperforming loans
170.52

 
173.69

 
271.30

 
150.71

 
124.86


(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 June 30, 2016 and March 31, 2016, $1.7 million at December 31, 2015 and September 30, 2015, and $1.8 million at June 30, 2015.


Page 5

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


 
2016
 
2015
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
SUBSTANDARD PERFORMING LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
335

 
$
440

 
$
847

 
$
429

 
$
1,056

Multi–family mortgage loans
2,025

 
3,347

 
5,167

 
6,254

 
4,849

Nonresidential real estate loans
3,194

 
4,981

 
4,981

 
5,259

 
4,506

Construction and land loans
830

 

 
842

 
819

 
730

Commercial loans
225

 
137

 
614

 
703

 
571

Consumer loans
2

 

 

 

 

 
$
6,611

 
$
8,905

 
$
12,451

 
$
13,464

 
$
11,712

 
 
 
 
 
 
 
 
 
 
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
30 – 59 days past due
$
171

 
$
3,012

 
$
2,036

 
$
63

 
$
138

60 – 89 days past due
71

 
30

 
926

 
816

 
648

Matured Loans
277

 
1,387

 
1,467

 
224

 
38

 
$
519

 
$
4,429

 
$
4,429

 
$
1,103

 
$
824

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
9,416

 
$
9,691

 
$
10,081

 
$
10,810

 
$
11,576

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(355
)
 
(52
)
 
(59
)
 
(125
)
 
(99
)
Multi–family mortgage loans
(6
)
 
(45
)
 
(9
)
 
(9
)
 
(161
)
Nonresidential real estate loans
(1,657
)
 
(3
)
 
(102
)
 
(26
)
 
(252
)
Commercial loans

 

 
(54
)
 

 

Consumer loans
(2
)
 
(16
)
 
(5
)
 
(3
)
 
(4
)
 
(2,020
)
 
(116
)
 
(229
)
 
(163
)
 
(516
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
6

 
81

 
407

 
16

 
219

Multi–family mortgage loans
9

 
137

 
5

 
169

 
4

Nonresidential real estate loans
161

 

 
460

 
24

 
9

Construction and land loans

 
35

 

 
38

 

Commercial loans
28

 
77

 
5

 
143

 
6

Consumer loans

 
1

 

 

 

 
204

 
331

 
877

 
390

 
238

Net (charge–offs) recoveries
(1,816
)
 
215

 
648

 
227

 
(278
)
Provision for (recovery of) loan losses
1,315

 
(490
)
 
(1,038
)
 
(956
)
 
(488
)
Ending balance
$
8,915

 
$
9,416

 
$
9,691

 
$
10,081

 
$
10,810

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
0.73
%
 
0.76
 %
 
0.78
 %
 
0.86
 %
 
0.93
%
Net charge–off (recovery) ratio (1)
0.60

 
(0.07
)
 
(0.22
)
 
(0.08
)
 
0.10

(1)
Annualized


Page 6

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


 
2016
 
2015
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
231,928

 
$
238,848

 
$
254,830

 
$
233,192

 
$
190,411

Savings deposits
158,669

 
161,554

 
156,752

 
152,585

 
156,436

Money market accounts
315,615

 
323,197

 
329,654

 
327,080

 
334,898

Interest–bearing NOW accounts
258,083

 
247,434

 
248,982

 
245,780

 
290,670

Certificates of deposits - retail
223,948

 
221,101

 
211,010

 
210,588

 
215,094

Certificates of deposits - wholesale
80,359

 
72,555

 
11,691

 
12,309

 
12,717

 
$
1,268,602

 
$
1,264,689

 
$
1,212,919

 
$
1,181,534

 
$
1,200,226

 
 
 
 
 
 
 
 
 
 
SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,510,115

 
$
1,513,683

 
$
1,448,857

 
$
1,434,749

 
$
1,449,740

Total average interest–earning assets
1,413,161

 
1,414,008

 
1,348,782

 
1,336,412

 
1,347,810

Average loans
1,210,726

 
1,238,270

 
1,175,723

 
1,164,251

 
1,150,417

Average securities
108,865

 
118,557

 
107,344

 
102,578

 
107,697

Average stock in FHLB
6,257

 
6,257

 
6,257

 
6,257

 
6,257

Average other interest–earning assets
87,313

 
50,924

 
59,458

 
63,326

 
83,439

Total average interest–bearing liabilities
1,037,781

 
1,037,730

 
971,000

 
990,733

 
1,025,544

Average interest–bearing deposits
1,034,674

 
962,823

 
951,631

 
981,633

 
1,022,661

Average borrowings
3,107

 
74,907

 
19,369

 
9,100

 
2,883

Average stockholders’ equity
209,231

 
212,322

 
213,858

 
213,061

 
215,113

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.58
%
 
3.63
%
 
3.65
%
 
3.61
%
 
3.63
%
Average loans
4.02

 
4.01

 
4.06

 
4.02

 
4.13

Average securities
1.13

 
1.07

 
1.07

 
1.03

 
0.96

Average other interest–earning assets
0.75

 
0.69

 
0.51

 
0.50

 
0.45

Total average interest–bearing liabilities
0.37

 
0.33

 
0.30

 
0.28

 
0.27

Average interest–bearing deposits
0.37

 
0.33

 
0.30

 
0.28

 
0.27

Average borrowings
0.26

 
0.37

 
0.25

 
0.17

 
0.28

Net interest rate spread
3.21

 
3.30

 
3.35

 
3.33

 
3.36

Net interest margin
3.31

 
3.39

 
3.43

 
3.40

 
3.42

(1)     Annualized

Page 7

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


 
2016
 
2015
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
13.78
%
 
13.86
%
 
14.04
%
 
14.89
%
 
14.71
%
Tangible equity to tangible total assets (end of period)
14.57

 
14.57

 
14.76

 
14.80

 
14.61

Risk–based total capital ratio
18.09

 
17.80

 
17.89

 
19.10

 
18.40

Common Tier 1 (CET1)
17.26

 
16.95

 
17.01

 
18.14

 
17.39

Risk–based tier 1 capital ratio
17.26

 
16.95

 
17.01

 
18.14

 
17.39

Tier 1 leverage ratio
12.41

 
12.53

 
13.26

 
13.41

 
13.08

Tier 1 capital
$
184,695

 
$
186,964

 
$
189,044

 
$
189,216

 
$
186,337

BankFinancial FSB
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
15.09
%
 
15.83
%
 
15.41
%
 
16.22
%
 
15.54
%
Common Tier 1 (CET1)
14.26

 
14.98

 
14.54

 
15.25

 
14.53

Risk–based tier 1 capital ratio
14.26

 
14.98

 
14.54

 
15.25

 
14.53

Tier 1 leverage ratio
10.25

 
11.08

 
11.33

 
11.27

 
10.92

Tier 1 capital
$
152,559

 
$
165,183

 
$
161,545

 
$
159,118

 
$
155,586

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
11.99

 
$
11.82

 
$
12.63

 
$
12.43

 
$
11.78

High
12.89

 
13.29

 
13.22

 
12.48

 
13.62

Low
11.38

 
11.42

 
12.10

 
11.57

 
11.47

Common shares outstanding
19,678,697

 
19,939,500

 
20,297,317

 
20,501,966

 
20,501,966

Book value per share
$
10.50

 
$
10.51

 
$
10.46

 
$
10.39

 
$
10.33

Tangible book value per share
$
10.45

 
$
10.45

 
$
10.40

 
$
10.32

 
$
10.25

Cash dividends declared on common stock
$
0.05

 
$
0.05

 
$
0.04

 
$
0.08

 
$
0.04

Dividend payout ratio
119.60
%
 
53.50
%
 
38.59
%
 
69.82
%
 
37.95
%
Stock repurchases
$
3,280

 
$
4,393

 
$
2,582

 
$

 
$
7,388

Stock repurchases – shares
260,803

 
357,817

 
204,649

 

 
600,000

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income
$
831

 
$
1,904

 
$
2,116

 
$
2,349

 
$
2,224

Average common shares outstanding
19,827,581

 
20,155,541

 
20,428,979

 
20,501,966

 
20,811,856

Less: Unearned ESOP shares
(694,773
)
 
(719,109
)
 
(743,659
)
 
(768,327
)
 
(792,816
)
Unvested restricted stock shares
(2,690
)
 
(7,881
)
 
(7,932
)
 
(7,932
)
 
(9,682
)
Weighted average common shares outstanding
19,130,118


19,428,551

 
19,677,388

 
19,725,707

 
20,009,358

Plus: Dilutive common shares equivalents
317

 
2,939

 
25,141

 
5,595

 
4,215

Weighted average dilutive common shares outstanding
19,130,435

 
19,431,490

 
19,702,529

 
19,731,302

 
20,013,573

Basic earnings per common share
$
0.04

 
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

Diluted earnings per common share
$
0.04

 
$
0.10

 
$
0.11

 
$
0.12

 
$
0.11

Number of anti–dilutive stock options excluded from the diluted earnings per share calculation
536,459

 
1,752,156

 
536,459

 

 

Weighted average exercise price of anti–dilutive options
$
12.99

 
$
12.30

 
$
12.99

 
$

 
$




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
June 30,
 
Six Months Ended
June 30,
 
2016
 
2015
 
2016
 
2015
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
Income before income taxes
$
1,345

 
$
3,648

 
$
4,402

 
$
6,920

Provision for (recovery of) loan losses
1,315

 
(488
)
 
825

 
(1,212
)
 
2,660

 
3,160

 
5,227

 
5,708

Adjustments:
 
 
 
 
 
 
 
Equity-based compensation
391

 
17

 
768

 
34

Nonperforming asset management
127

 
108

 
211

 
198

Gain on sale of other real estate owned
(38
)
 
(22
)
 

 
(80
)
Valuation adjustments of other real estate owned
10

 
23

 
129

 
236

Operations of other real estate owned
177

 
91

 
396

 
290

Adjustments
667

 
217

 
1,504

 
678

Pre–tax pre–provision earnings from core operations
$
3,327

 
$
3,377

 
$
6,731

 
$
6,386

 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.88
%
 
0.93
%
 
0.89
%
 
0.88
%

(1)
Annualized


Page 10

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

FOR THE LATEST FIVE QUARTERS
 
2016
 
2015
 
IIQ
 
IQ
 
IVQ
 
IIIQ
 
IIQ
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
 
Income before income taxes
$
1,345

 
$
3,057

 
$
3,299

 
$
3,881

 
$
3,648

Provision for (recovery of) loan losses
1,315

 
(490
)
 
(1,038
)
 
(956
)
 
(488
)
 
2,660

 
2,567

 
2,261

 
2,925

 
3,160

Adjustments:
 
 
 
 
 
 
 
 
 
Equity-based compensation
391

 
377

 
306

 
297

 
17

Nonperforming asset management
127

 
84

 
239

 
244

 
108

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

 
33

 
(11
)
 
(22
)
Valuation adjustments of other real estate owned
10

 
119

 
81

 
231

 
23

Operations of other real estate owned
177

 
219

 
169

 
114

 
91

 
667

 
837

 
828

 
875

 
217

Pre–tax pre–provision earnings from core operations
$
3,327

 
$
3,404

 
$
3,089

 
$
3,800

 
$
3,377

 
 
 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from core operations to average total assets (1)
0.88
%
 
0.90
%
 
0.85
%
 
1.06
%
 
0.93
%

(1)
Annualized


Page 11