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): July 29, 2019
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.) |
60 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, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | BFIN | The NASDAQ Stock Market LLC | ||
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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On July 29, 2019, BankFinancial Corporation (Nasdaq – BFIN) issued a press release announcing the results for the second quarter and six months ended June 30, 2019 and issued the Quarterly Financial and Statistical Supplement for the latest five quarters. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.
BankFinancial Corporation (the “Company”) will review results for the second quarter and six months ended June 30, 2019 in a conference call and webcast for stockholders and analysts on Tuesday, July 30, 2019 at 9:30 a.m. Chicago, Illinois Time.
The conference call may be accessed by calling (844) 413-1780 using participant passcode 2366368. The conference call will be simultaneously webcast at www.bankfinancial.com, “Investor Relations” page.
Item 9.01 Financial Statements and Exhibits.
(a) | Not Applicable. |
(b) | Not Applicable. |
(c) | Not Applicable. |
(d) | Exhibits. |
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: | July 29, 2019 | By: | /s/ F. Morgan Gasior | ||
F. Morgan Gasior | |||||
Chairman of the Board, Chief Executive Officer and President | |||||
Exhibit 99.1
FOR IMMEDIATE RELEASE
BankFinancial Corporation Reports Financial Results for the Second Quarter 2019 and
Will Host Conference Call and Webcast on Tuesday, July 30, 2019
Burr Ridge, Illinois - (July 29, 2019) BankFinancial Corporation (Nasdaq - BFIN) (the “Company” or "BankFinancial") announced today that the Company reported net income of $807,000, or $0.05 per common share, for the three months ended June 30, 2019, compared to net income of $4.6 million, or $0.26 per common share, for the three months ended June 30, 2018. BankFinancial also reported net income of $4.4 million, or $0.28 per common share, for the six months ended June 30, 2019, compared to net income of $8.2 million, or $0.46 per common share, for the six months ended June 30, 2018. The reduction in net income reflected a $4.4 million loss resulting from the non-recourse sale of a $7.8 million Chicago commercial credit relationship during the second quarter of 2019 after the borrowers placed the going concern status of their business in jeopardy by failing to make excise tax payments in violation of their agreements with the State of Illinois.
For the second quarter of 2019, net interest income before provision for loan losses was stable at $13.1 million, a decline of 0.9% from the previous quarter. Deposit, loan and trust fee income increased $96,000, or 8.3%, from the previous quarter. Non-interest expense was $9.5 million, a decline of 6.2% from the previous quarter, due to lower compensation and benefits and lower occupancy costs.
The average yield on our loan and lease portfolio for the quarter ended June 30, 2019 was 4.76%, compared to an average loan and lease portfolio yield of 4.77% for the quarter ended March 31, 2019. The average yield on our securities portfolio increased to 2.80% for the quarter ended June 30, 2019, compared to an average yield of 2.67% for the quarter ended March 31, 2019. The average cost of retail and commercial deposits increased to 1.13% for the quarter ended June 30, 2019, compared to an average cost of 1.08% for the quarter ended March 31, 2019. The average cost of wholesale deposits and borrowings increased to 2.39% for the quarter ended June 30, 2019, compared to an average cost of 2.29% for the quarter ended March 31, 2019. Our net interest margin declined slightly to 3.60% for the quarter ended June 30, 2019, compared to 3.64% for the quarter ended March 31, 2019.
For the second quarter of 2019, commercial loans decreased by $18.6 million (10.8%) primarily due to the non-recourse loan sale and reduced line utilization by commercial equipment lessors. Multi-family real estate loans decreased by $14.4 million (2.3%), compared to March 31, 2019 due to lower originations volume and elevated payoffs due to project sales or cash-out refinances by other lenders. One-to-four residential real estate loan balances declined due to portfolio amortization and prepayments.
The ratio of nonperforming loans to total loans was 0.24% and the ratio of non-performing assets to total assets was 0.23% at June 30, 2019. Non-performing commercial-related loans represented 0.17% of total commercial-related loans.
We continued various steps to emphasize the origination of retail certificates of deposit because they align with our current interest rate risk management strategies better than retail money market accounts. As a result, retail certificate of deposit accounts increased by $7.4 million (2.2%) compared to March 31, 2019 and retail money market deposit accounts declined by $1.7 million (0.7%). Total wholesale deposits and borrowings declined by $19.1 million (17.6%) during the second quarter of 2019 as we utilized excess liquidity to pay off maturing wholesale deposits and borrowings.
The Company’s capital position remained strong with a Tier 1 leverage ratio of 11.04%. During the first half of 2019, we repurchased 1,107,550 common shares, which represented 6.7% of the common shares outstanding at December 31, 2018.
“The operating trends for the second quarter of 2019 were stable to positive. Although the loan sale adversely impacted net income for the quarter, we will continue our focus on our targets for selective loan and deposit portfolio growth, and restoring our positive trends in earnings and operating efficiency for the remainder of 2019. The loan sale decision reflects our firm belief that prompt and definitive action in loan portfolio management is essential to preserving the predictability of future earnings and achievement of the Company’s business plan objectives.” said F. Morgan Gasior, the Chairman and CEO of the Company.
The Company’s Quarterly Financial and Statistical Supplement will be available today on BankFinancial's website, www.bankfinancial.com on 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 2019 results in a conference call and webcast for stockholders and analysts on Tuesday, July 30, 2019 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 2366368. The conference call will be simultaneously webcast at www.bankfinancial.com, “Investor Relations” page. For those unable to participate in the conference call, the webcast will be archived through Tuesday, August 13, 2019 on our website.
BankFinancial Corporation is the holding company for BankFinancial, NA, a national bank providing financial services to individuals, families and businesses through 19 full-service banking offices, located in Cook, DuPage, Lake and Will Counties, Illinois and to selected commercial loan and deposit customers on a regional or national basis. BankFinancial Corporation's common stock trades on the Nasdaq Global Select Market under the symbol BFIN. Additional information may be found at the company's website, www.bankfinancial.com.
This release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. A variety of factors could cause BankFinancial’s actual results to differ from those expected at the time of this release. For a discussion of some of the factors that may cause actual results to differ from expectations, please refer to BankFinancial’s most recent Annual Report on Form 10-K as filed with the SEC, 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 President – Marketing & Sales BankFinancial, NA Telephone: 630-242-7234 | |
Exhibit 99.2
BANKFINANCIAL CORPORATION
SECOND QUARTER 2019
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)
2019 | 2018 | ||||||||||||||||||
IIQ | IQ | IVQ | IIIQ | IIQ | |||||||||||||||
PERFORMANCE MEASUREMENTS | |||||||||||||||||||
Return on assets (ratio of net income to average total assets) (1) | 0.21 | % | 0.91 | % | 1.92 | % | 0.97 | % | 1.18 | % | |||||||||
Return on equity (ratio of net income to average equity) (1) | 1.84 | 7.68 | 15.72 | 7.68 | 9.39 | ||||||||||||||
Net interest rate spread (1) | 3.30 | 3.35 | 3.24 | 3.30 | 3.31 | ||||||||||||||
Net interest margin (1) | 3.60 | 3.64 | 3.52 | 3.51 | 3.49 | ||||||||||||||
Efficiency ratio | 65.19 | 68.03 | 51.22 | 64.84 | 63.55 | ||||||||||||||
Noninterest expense to average total assets (1) | 2.48 | 2.60 | 2.88 | 2.45 | 2.61 | ||||||||||||||
Average interest–earning assets to average interest–bearing liabilities | 131.66 | 131.53 | 133.35 | 133.23 | 133.62 | ||||||||||||||
Number of full service offices | 19 | 19 | 19 | 19 | 19 | ||||||||||||||
Employees (full time equivalents) (2) | 231 | 235 | 236 | 245 | 250 | ||||||||||||||
SUMMARY STATEMENT OF FINANCIAL CONDITION | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from other financial institutions | $ | 13,998 | $ | 12,016 | $ | 13,805 | $ | 12,473 | $ | 11,738 | |||||||||
Interest-bearing deposits in other financial institutions | 89,609 | 66,206 | 84,399 | 74,461 | 80,457 | ||||||||||||||
Securities, at fair value | 87,080 | 83,240 | 88,179 | 103,921 | 112,452 | ||||||||||||||
Loans receivable, net | 1,267,454 | 1,306,475 | 1,323,793 | 1,267,787 | 1,287,823 | ||||||||||||||
Other real estate owned, net | 497 | 921 | 1,226 | 985 | 1,187 | ||||||||||||||
Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost | 7,490 | 8,026 | 8,026 | 8,026 | 8,311 | ||||||||||||||
Premises and equipment, net | 24,923 | 24,992 | 25,205 | 24,473 | 24,441 | ||||||||||||||
Bank owned life insurance | 18,877 | 18,839 | 18,809 | 18,781 | 18,746 | ||||||||||||||
Deferred taxes | 4,816 | 5,023 | 6,235 | 8,911 | 10,199 | ||||||||||||||
Other assets | 19,178 | 19,282 | 15,648 | 12,666 | 12,144 | ||||||||||||||
Total assets | $ | 1,533,922 | $ | 1,545,020 | $ | 1,585,325 | $ | 1,532,484 | $ | 1,567,498 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Deposits | $ | 1,330,207 | $ | 1,326,746 | $ | 1,352,484 | $ | 1,295,770 | $ | 1,295,853 | |||||||||
Borrowings | 798 | 16,106 | 21,049 | 21,232 | 50,901 | ||||||||||||||
Other liabilities | 31,426 | 25,948 | 24,642 | 23,399 | 26,516 | ||||||||||||||
Total liabilities | 1,362,431 | 1,368,800 | 1,398,175 | 1,340,401 | 1,373,270 | ||||||||||||||
Stockholders’ equity | 171,491 | 176,220 | 187,150 | 192,083 | 194,228 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,533,922 | $ | 1,545,020 | $ | 1,585,325 | $ | 1,532,484 | $ | 1,567,498 | |||||||||
(1)Annualized
(2) | Second quarter 2018 full time equivalents employees include summer interns. These employees worked from May through August. |
Page 2
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2019 | 2018 | ||||||||||||||||||
IIQ | IQ | IVQ | IIIQ | IIQ | |||||||||||||||
SUMMARY STATEMENT OF OPERATIONS | |||||||||||||||||||
Total interest income | $ | 16,522 | $ | 16,526 | $ | 16,146 | $ | 15,373 | $ | 15,020 | |||||||||
Total interest expense | 3,419 | 3,307 | 3,043 | 2,408 | 2,039 | ||||||||||||||
Net interest income before provision (recovery) | 13,103 | 13,219 | 13,103 | 12,965 | 12,981 | ||||||||||||||
Provision for (recovery of) loan losses | 3,957 | (87 | ) | 403 | (23 | ) | 23 | ||||||||||||
Net interest income | 9,146 | 13,306 | 12,700 | 12,988 | 12,958 | ||||||||||||||
Noninterest income | 1,426 | 1,624 | 8,674 | 1,570 | 3,094 | ||||||||||||||
Noninterest expense | 9,472 | 10,098 | 11,155 | 9,425 | 10,215 | ||||||||||||||
Income before income tax | 1,100 | 4,832 | 10,219 | 5,133 | 5,837 | ||||||||||||||
Income tax expense | 293 | 1,281 | 2,803 | 1,396 | 1,207 | ||||||||||||||
Net income | $ | 807 | $ | 3,551 | $ | 7,416 | $ | 3,737 | $ | 4,630 | |||||||||
Basic earnings per common share | $ | 0.05 | $ | 0.22 | $ | 0.44 | $ | 0.22 | $ | 0.26 | |||||||||
Diluted earnings per common share | $ | 0.05 | $ | 0.22 | $ | 0.44 | $ | 0.22 | $ | 0.26 | |||||||||
NONINTEREST INCOME AND EXPENSE | |||||||||||||||||||
Noninterest Income | |||||||||||||||||||
Deposit service charges and fees | $ | 974 | $ | 930 | $ | 998 | $ | 1,003 | $ | 989 | |||||||||
Loan fee income | 56 | 23 | 208 | 71 | 90 | ||||||||||||||
Commercial mortgage brokerage fees | 8 | — | — | 12 | 85 | ||||||||||||||
Residential mortgage banking fees | 13 | 28 | 31 | 34 | 24 | ||||||||||||||
Gain (loss) on sales of equity securities | — | 295 | 3,572 | — | (14 | ) | |||||||||||||
Unrealized gain on equity securities | — | — | 3,427 | — | — | ||||||||||||||
Loss on disposal of other assets | — | (19 | ) | — | — | — | |||||||||||||
Gain on sale of premises held-for-sale | — | — | — | — | 93 | ||||||||||||||
Trust insurance commissions and annuities income | 224 | 205 | 267 | 207 | 250 | ||||||||||||||
Earnings on bank owned life insurance | 38 | 30 | 28 | 35 | 45 | ||||||||||||||
Bank-owned life insurance death benefit | — | — | — | — | 1,389 | ||||||||||||||
Other | 113 | 132 | 143 | 208 | 143 | ||||||||||||||
Total noninterest income | $ | 1,426 | $ | 1,624 | $ | 8,674 | $ | 1,570 | $ | 3,094 | |||||||||
Noninterest Expense | |||||||||||||||||||
Compensation and benefits | $ | 5,207 | $ | 5,703 | $ | 6,755 | $ | 5,120 | $ | 5,790 | |||||||||
Office occupancy and equipment | 1,621 | 1,845 | 1,795 | 1,629 | 1,662 | ||||||||||||||
Advertising and public relations | 145 | 161 | 237 | 194 | 274 | ||||||||||||||
Information technology | 736 | 692 | 726 | 717 | 708 | ||||||||||||||
Supplies, telephone, and postage | 319 | 399 | 363 | 341 | 396 | ||||||||||||||
Amortization of intangibles | 14 | 20 | 21 | 20 | 21 | ||||||||||||||
Nonperforming asset management | 58 | 54 | 40 | 60 | 51 | ||||||||||||||
Loss (gain) on sales of other real estate owned | 4 | (95 | ) | — | (12 | ) | 47 | ||||||||||||
Valuation adjustments of other real estate owned | 21 | — | — | 1 | 1 | ||||||||||||||
Operations of other real estate owned, net | 22 | 51 | 77 | 70 | 87 | ||||||||||||||
FDIC insurance premiums | 146 | 108 | 99 | 115 | 104 | ||||||||||||||
Other | 1,179 | 1,160 | 1,042 | 1,170 | 1,074 | ||||||||||||||
Total noninterest expense | $ | 9,472 | $ | 10,098 | $ | 11,155 | $ | 9,425 | $ | 10,215 | |||||||||
Page 3
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2019 | 2018 | ||||||||||||||||||
IIQ | IQ | IVQ | IIIQ | IIQ | |||||||||||||||
LOANS | |||||||||||||||||||
One–to–four family residential real estate | $ | 64,192 | $ | 66,833 | $ | 70,371 | $ | 77,591 | $ | 84,048 | |||||||||
Multi–family mortgage | 619,898 | 634,328 | 619,870 | 581,880 | 571,886 | ||||||||||||||
Nonresidential real estate | 145,416 | 148,601 | 152,442 | 148,010 | 155,627 | ||||||||||||||
Construction and land | 117 | 145 | 172 | 1,130 | 1,316 | ||||||||||||||
Commercial loans | 153,709 | 172,264 | 187,406 | 167,547 | 163,925 | ||||||||||||||
Commercial leases | 289,107 | 289,750 | 299,394 | 297,103 | 316,555 | ||||||||||||||
Consumer | 1,861 | 1,846 | 1,539 | 1,416 | 1,469 | ||||||||||||||
1,274,300 | 1,313,767 | 1,331,194 | 1,274,677 | 1,294,826 | |||||||||||||||
Net deferred loan origination costs | 978 | 1,062 | 1,069 | 1,213 | 1,176 | ||||||||||||||
Allowance for loan losses | (7,824 | ) | (8,354 | ) | (8,470 | ) | (8,103 | ) | (8,179 | ) | |||||||||
Loans, net | $ | 1,267,454 | $ | 1,306,475 | $ | 1,323,793 | $ | 1,267,787 | $ | 1,287,823 | |||||||||
LOAN ORIGINATIONS (1) | |||||||||||||||||||
One–to–four family residential real estate | $ | 836 | $ | 695 | $ | 647 | $ | 1,290 | $ | 987 | |||||||||
Multi–family mortgage | 9,258 | 27,871 | 71,101 | 31,633 | 21,838 | ||||||||||||||
Nonresidential real estate | 4,100 | 1,641 | 7,120 | 1,166 | 1,310 | ||||||||||||||
Commercial loans | 153,537 | 155,123 | 171,048 | 164,974 | 164,048 | ||||||||||||||
Commercial leases | 34,959 | 27,611 | 52,929 | 27,296 | 77,744 | ||||||||||||||
Consumer | 842 | 1,174 | 913 | 695 | 672 | ||||||||||||||
$ | 203,532 | $ | 214,115 | $ | 303,758 | $ | 227,054 | $ | 266,599 | ||||||||||
Weighted average rate | 6.27 | % | 6.15 | % | 5.91 | % | 5.96 | % | 5.62 | % | |||||||||
LOAN PAYMENTS and PAYOFFS (2) | |||||||||||||||||||
One–to–four family residential real estate | $ | 3,415 | $ | 4,195 | $ | 7,590 | $ | 7,135 | $ | 8,959 | |||||||||
Multi–family mortgage | 23,685 | 13,308 | 35,135 | 19,804 | 27,911 | ||||||||||||||
Nonresidential real estate | 7,165 | 5,542 | 4,315 | 8,890 | 9,499 | ||||||||||||||
Construction and land | 27 | 27 | 27 | 184 | 15 | ||||||||||||||
Commercial loans | 167,352 | 170,387 | 151,768 | 161,359 | 162,544 | ||||||||||||||
Commercial leases | 39,633 | 37,259 | 50,742 | 46,885 | 47,417 | ||||||||||||||
Consumer | 800 | 781 | 868 | 762 | 704 | ||||||||||||||
$ | 242,077 | $ | 231,499 | $ | 250,445 | $ | 245,019 | $ | 257,049 | ||||||||||
Weighted average rate | 5.91 | % | 5.91 | % | 5.59 | % | 5.56 | % | 5.28 | % | |||||||||
(1) | Loan originations include purchased loans, 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)
2019 | 2018 | ||||||||||||||||||
IIQ | IQ | IVQ | IIIQ | IIQ | |||||||||||||||
CREDIT QUALITY: | |||||||||||||||||||
Nonperforming Assets: | |||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||
One–to–four family residential real estate | $ | 923 | $ | 844 | $ | 1,240 | $ | 1,369 | $ | 1,538 | |||||||||
Multi–family mortgage | — | — | — | 102 | 92 | ||||||||||||||
Nonresidential real estate | 2,080 | 242 | 270 | — | — | ||||||||||||||
Commercial loans | — | 354 | — | — | — | ||||||||||||||
Consumer loans | — | — | — | — | 6 | ||||||||||||||
Nonaccrual loans | 3,003 | 1,440 | 1,510 | 1,471 | 1,636 | ||||||||||||||
Other real estate owned: | |||||||||||||||||||
One–to–four family residential real estate | 497 | 921 | 875 | 634 | 833 | ||||||||||||||
Multi–family mortgage | — | — | 276 | 276 | 276 | ||||||||||||||
Nonresidential real estate | — | — | 74 | 74 | 74 | ||||||||||||||
Land | — | — | 1 | 1 | 4 | ||||||||||||||
Other real estate owned | 497 | 921 | 1,226 | 985 | 1,187 | ||||||||||||||
Nonperforming assets | $ | 3,500 | $ | 2,361 | $ | 2,736 | $ | 2,456 | $ | 2,823 | |||||||||
Asset Quality Ratios | |||||||||||||||||||
Nonperforming assets to total assets | 0.23 | % | 0.15 | % | 0.17 | % | 0.16 | % | 0.18 | % | |||||||||
Nonperforming loans to total loans | 0.24 | 0.11 | 0.11 | 0.12 | 0.13 | ||||||||||||||
Nonperforming commercial-related loans to total commercial-related loans (1) | 0.17 | 0.05 | 0.02 | 0.01 | 0.01 | ||||||||||||||
Nonperforming residential and consumer loans to total residential and consumer loans | 1.40 | 1.23 | 1.72 | 1.73 | 1.81 | ||||||||||||||
Allowance for loan losses to nonperforming loans | 260.54 | 580.14 | 560.93 | 550.85 | 499.94 | ||||||||||||||
Concentrations of Credit | |||||||||||||||||||
Commercial Real Estate for FFIEC Concentration Limits | $ | 734,567 | $ | 749,755 | $ | 737,887 | $ | 697,843 | $ | 694,555 | |||||||||
% FFIEC Total Capital | 437.62 | % | 440.83 | % | 413.00 | % | 378.64 | % | 378.45 | % | |||||||||
Multi–family mortgage loans - 50% risk based capital qualified (included above) | $ | 286,910 | $ | 351,284 | $ | 370,512 | $ | 357,947 | $ | 299,138 | |||||||||
% FFIEC Total Capital | 170.93 | % | 206.54 | % | 207.38 | % | 194.22 | % | 162.99 | % | |||||||||
Commercial Leases - Investment Grade | $ | 143,148 | $ | 157,215 | $ | 166,209 | $ | 181,131 | $ | 197,746 | |||||||||
Commercial Leases - Other | 145,959 | 132,535 | 133,185 | 115,972 | 118,809 | ||||||||||||||
(1) | Commercial-related loans include Multi-family mortgage, Nonresidential, Construction and land and Commercial loans and Commercial leases. |
Page 5
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2019 | 2018 | ||||||||||||||||||
IIQ | IQ | IVQ | IIIQ | IIQ | |||||||||||||||
SUBSTANDARD PERFORMING LOANS | |||||||||||||||||||
One–to–four family residential real estate | $ | 487 | $ | 384 | $ | 365 | $ | 409 | $ | 295 | |||||||||
Multi–family mortgage | 213 | 214 | 216 | 310 | 218 | ||||||||||||||
Nonresidential real estate | 93 | 95 | 98 | 99 | 100 | ||||||||||||||
Commercial loans | 500 | 3,033 | 342 | 4,699 | 3,820 | ||||||||||||||
Consumer | 1 | 9 | 7 | 10 | 1 | ||||||||||||||
$ | 1,294 | $ | 3,735 | $ | 1,028 | $ | 5,527 | $ | 4,434 | ||||||||||
ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||
Beginning balance | $ | 8,354 | $ | 8,470 | $ | 8,103 | $ | 8,179 | $ | 8,341 | |||||||||
Charge–offs: | |||||||||||||||||||
One–to–four family residential real estate | (50 | ) | (23 | ) | (17 | ) | (84 | ) | (33 | ) | |||||||||
Multi–family mortgage | — | — | — | — | (35 | ) | |||||||||||||
Nonresidential real estate | — | (28 | ) | (93 | ) | — | — | ||||||||||||
Commercial loans | (4,443 | ) | — | — | (140 | ) | |||||||||||||
Consumer | (10 | ) | (5 | ) | (12 | ) | (6 | ) | (1 | ) | |||||||||
(4,503 | ) | (56 | ) | (122 | ) | (90 | ) | (209 | ) | ||||||||||
Recoveries: | |||||||||||||||||||
One–to–four family residential real estate | 6 | 17 | 76 | 25 | 6 | ||||||||||||||
Multi–family mortgage | 8 | 8 | 8 | 8 | 10 | ||||||||||||||
Construction and land | — | — | — | 2 | — | ||||||||||||||
Commercial loans | 2 | 2 | 2 | 2 | 2 | ||||||||||||||
Commercial leases | — | — | — | — | 5 | ||||||||||||||
Consumer | — | — | — | — | 1 | ||||||||||||||
16 | 27 | 86 | 37 | 24 | |||||||||||||||
Net charge–offs | (4,487 | ) | (29 | ) | (36 | ) | (53 | ) | (185 | ) | |||||||||
Provision for (recovery of ) loan losses | 3,957 | (87 | ) | 403 | (23 | ) | 23 | ||||||||||||
Ending balance | $ | 7,824 | $ | 8,354 | $ | 8,470 | $ | 8,103 | $ | 8,179 | |||||||||
Allowance for loan losses to total loans | 0.61 | % | 0.64 | % | 0.64 | % | 0.64 | % | 0.63 | % | |||||||||
Net charge–off ratio (1) | (1.38 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.06 | ) | |||||||||
(1) | Annualized |
Page 6
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2019 | 2018 | ||||||||||||||||||
IIQ | IQ | IVQ | IIIQ | IIQ | |||||||||||||||
DEPOSITS | |||||||||||||||||||
Noninterest–bearing demand | $ | 213,966 | $ | 222,328 | $ | 230,041 | $ | 225,446 | $ | 229,717 | |||||||||
Interest–bearing NOW accounts | 278,405 | 266,402 | 275,830 | 283,561 | 281,603 | ||||||||||||||
Money market accounts | 246,941 | 248,657 | 255,951 | 266,070 | 281,493 | ||||||||||||||
Savings deposits | 153,414 | 155,505 | 152,334 | 155,232 | 158,731 | ||||||||||||||
Certificates of deposit - retail | 348,685 | 341,266 | 332,053 | 275,160 | 251,974 | ||||||||||||||
Certificates of deposit - wholesale | 88,796 | 92,588 | 106,275 | 90,301 | 92,335 | ||||||||||||||
$ | 1,330,207 | $ | 1,326,746 | $ | 1,352,484 | $ | 1,295,770 | $ | 1,295,853 | ||||||||||
SELECTED AVERAGE BALANCES | |||||||||||||||||||
Total average assets | $ | 1,529,033 | $ | 1,553,484 | $ | 1,548,292 | $ | 1,540,522 | $ | 1,565,996 | |||||||||
Total average interest–earning assets | 1,458,180 | 1,474,355 | 1,478,028 | 1,463,404 | 1,492,824 | ||||||||||||||
Average loans | 1,297,548 | 1,304,385 | 1,296,108 | 1,274,788 | 1,291,339 | ||||||||||||||
Average securities | 86,144 | 91,271 | 98,756 | 113,234 | 107,384 | ||||||||||||||
Average stock in FHLB & FRB | 7,629 | 8,026 | 8,026 | 8,125 | 8,411 | ||||||||||||||
Average other interest–earning assets | 66,859 | 70,673 | 75,138 | 67,257 | 85,690 | ||||||||||||||
Total average interest–bearing liabilities | 1,107,540 | 1,120,957 | 1,108,397 | 1,098,424 | 1,117,188 | ||||||||||||||
Average interest–bearing deposits | 1,106,439 | 1,106,582 | 1,085,611 | 1,059,929 | 1,055,228 | ||||||||||||||
Average borrowings | 1,101 | 14,375 | 22,786 | 38,495 | 61,960 | ||||||||||||||
Average stockholders’ equity | 175,452 | 184,957 | 188,643 | 194,745 | 197,314 | ||||||||||||||
SELECTED YIELDS AND COST OF FUNDS (1): | |||||||||||||||||||
Total average interest–earning assets | 4.54 | % | 4.55 | % | 4.33 | % | 4.17 | % | 4.04 | % | |||||||||
Average loans | 4.76 | 4.77 | 4.59 | 4.43 | 4.34 | ||||||||||||||
Average securities | 2.80 | 2.67 | 2.38 | 2.20 | 2.04 | ||||||||||||||
Average other interest–earning assets | 2.63 | 2.71 | 2.61 | 2.28 | 1.81 | ||||||||||||||
Total average interest–bearing liabilities | 1.24 | 1.20 | 1.09 | 0.87 | 0.73 | ||||||||||||||
Average interest–bearing deposits | 1.24 | 1.18 | 1.07 | 0.85 | 0.70 | ||||||||||||||
Average cost of total deposits | 1.04 | 0.99 | 0.89 | 0.70 | 0.57 | ||||||||||||||
Average cost of retail and commercial deposits | 1.13 | 1.08 | 0.97 | 0.75 | 0.60 | ||||||||||||||
Average cost of wholesale deposits and borrowings | 2.39 | 2.29 | 2.09 | 1.77 | 1.57 | ||||||||||||||
Average cost of funds | 1.04 | 1.00 | 0.90 | 0.72 | 0.61 | ||||||||||||||
Net interest rate spread | 3.30 | 3.35 | 3.24 | 3.30 | 3.31 | ||||||||||||||
Net interest margin | 3.60 | 3.64 | 3.52 | 3.51 | 3.49 | ||||||||||||||
Page 7
BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)
2019 | 2018 | ||||||||||||||||||
IIQ | IQ | IVQ | IIIQ | IIQ | |||||||||||||||
CAPITAL RATIOS | |||||||||||||||||||
BankFinancial Corporation | |||||||||||||||||||
Equity to total assets (end of period) | 11.18 | % | 11.41 | % | 11.81 | % | 12.53 | % | 12.39 | % | |||||||||
Tangible equity to tangible total assets (end of period) | 11.10 | 11.40 | 11.80 | 12.53 | 12.38 | ||||||||||||||
Risk–based total capital ratio | 15.17 | 15.47 | 16.33 | 17.40 | 16.73 | ||||||||||||||
Common Tier 1 (CET1) | 14.49 | 14.76 | 15.61 | 16.67 | 16.02 | ||||||||||||||
Risk–based tier 1 capital ratio | 14.49 | 14.76 | 15.61 | 16.67 | 16.02 | ||||||||||||||
Tier 1 leverage ratio | 11.04 | 11.13 | 11.82 | 12.06 | 11.93 | ||||||||||||||
Tier 1 capital | $ | 168,461 | $ | 172,486 | $ | 182,404 | $ | 185,015 | $ | 185,836 | |||||||||
BankFinancial, NA | |||||||||||||||||||
Risk–based total capital ratio | 14.46 | % | 14.58 | % | 15.30 | % | 16.61 | % | 15.83 | % | |||||||||
Common Tier 1 (CET1) | 13.78 | 13.86 | 14.57 | 15.88 | 15.12 | ||||||||||||||
Risk–based tier 1 capital ratio | 13.78 | 13.86 | 14.57 | 15.88 | 15.12 | ||||||||||||||
Tier 1 leverage ratio | 10.49 | 10.45 | 11.03 | 11.49 | 11.26 | ||||||||||||||
Tier 1 capital | $ | 159,917 | $ | 161,723 | $ | 170,194 | $ | 176,199 | $ | 175,349 | |||||||||
COMMON STOCK AND DIVIDENDS | |||||||||||||||||||
Stock Prices: | |||||||||||||||||||
Close | $ | 13.99 | $ | 14.87 | $ | 14.95 | $ | 15.94 | $ | 17.65 | |||||||||
High | 15.63 | 16.06 | 16.06 | 18.08 | 18.62 | ||||||||||||||
Low | 13.44 | 13.46 | 13.88 | 15.32 | 15.07 | ||||||||||||||
Common shares outstanding | 15,373,964 | 15,644,499 | 16,481,514 | 17,206,303 | 17,461,088 | ||||||||||||||
Book value per share | $ | 11.15 | $ | 11.26 | $ | 11.36 | $ | 11.16 | $ | 11.12 | |||||||||
Tangible book value per share | $ | 11.15 | $ | 11.26 | $ | 11.35 | $ | 11.16 | $ | 11.12 | |||||||||
Cash dividends declared on common stock | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.09 | |||||||||
Dividend payout ratio | 191.78 | % | 46.35 | % | 22.74 | % | 46.65 | % | 34.20 | % | |||||||||
Stock repurchases | $ | 4,001 | $ | 12,840 | $ | 10,691 | $ | 4,103 | $ | 7,167 | |||||||||
Stock repurchases – shares | 270,535 | 837,015 | 724,789 | 254,785 | 415,889 | ||||||||||||||
EARNINGS PER SHARE COMPUTATIONS | |||||||||||||||||||
Net income | $ | 807 | $ | 3,551 | $ | 7,416 | $ | 3,737 | $ | 4,630 | |||||||||
Average common shares outstanding | 15,472,618 | 16,202,303 | 16,820,641 | 17,365,679 | 17,634,190 | ||||||||||||||
Unvested restricted stock shares | — | — | — | — | (375 | ) | |||||||||||||
Weighted average common shares outstanding | 15,472,618 | 16,202,303 | 16,820,641 | 17,365,679 | 17,633,815 | ||||||||||||||
Weighted average dilutive common shares outstanding | 15,472,618 | 16,202,303 | 16,820,641 | 17,365,679 | 17,633,815 | ||||||||||||||
Basic earnings per common share | $ | 0.05 | $ | 0.22 | $ | 0.44 | $ | 0.22 | $ | 0.26 | |||||||||
Diluted earnings per common share | $ | 0.05 | $ | 0.22 | $ | 0.44 | $ | 0.22 | $ | 0.26 | |||||||||
Page 8