SEC Filing | BankFinancial Corporation

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bfin20200514_8k.htm

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): February 1, 2021

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)

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))

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

Indicate by check mark whether the registrant is an emerging growth company 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 February 1, 2021, BankFinancial Corporation (Nasdaq – BFIN) issued a press release announcing the results for the fourth quarter and year ended December 31, 2020 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 will review results for the fourth quarter and year ended December 31, 2020 in a conference call and webcast for stockholders and analysts on Wednesday, February 3, 2021 at 9:30 a.m. Chicago, Illinois Time.

The conference call may be accessed by calling (844) 413-1780 using participant passcode 2253316. 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.

	Exhibit No.	Description
	99.1	Press Release dated February 1, 2021
	99.2	Quarterly Financial and Statistical Supplement
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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:	February 1, 2021	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board, Chief Executive Officer and President

ex_186771.htm

Exhibit 99.1

https://cdn.kscope.io/53efca572a1232ffb923fc51664e05dc-bfinlogo.jpg

FOR IMMEDIATE RELEASE

BankFinancial Corporation Reports Financial Results for 2020 and

Will Host Conference Call and Webcast on Wednesday, February 3, 2021

Burr Ridge, Illinois - (February 1, 2021) BankFinancial Corporation (Nasdaq – BFIN) (the “Company”) announced today that the Company recorded net income of $9.2 million for the year ended December 31, 2020 and basic and diluted earnings per common share of $0.61 for the year ended December 31, 2020.

The Company recorded net income of $2.4 million and basic and diluted earnings per common share of $0.17 for the fourth quarter of 2020, compared to $3.4 million and $0.22 per share for the fourth quarter of 2019.

The Company’s net income for the fourth quarter of 2020 included $605,000 of income related to loan prepayments, $255,000 of commercial credit facilities fees, and $162,000 of fee income from the Paycheck Protection Program and a modest increase in trust income. These increases were partially offset by a reduction of deposit services income related to retail account activity. The Company’s noninterest expense for the fourth quarter of 2020 was consistent with the prior quarter despite increases in occupancy expenses related to COVID-19 health security and risk mitigation, real estate taxes on branch facilities, personnel expenses related to equipment finance incentive plans and recruiting expenses related to the addition of originations and underwriting personnel for the Commercial Finance Division and Treasury Services Department.

Due to exceptionally high prepayments of multi-family loans, the Company’s total loans decreased by $63.3 million during the fourth quarter of 2020. Commercial loans and leases increased by $25.4 million due to strong originations of commercial equipment finance transactions resulting from the expansion of our equipment finance products in 2020. Multi-family mortgage loans declined by $70.6 million due to loan prepayments primarily related either to project sales, or to equity cash-out refinances in excess of the Company’s credit risk parameters or legal lending limits, which occurred in the latter half of the quarter within our geographic markets outside the Chicago metropolitan area. Nonresidential real estate loans declined by $15.8 million, due in part to planned reductions in exposure to commercial retail shopping assets, borrower repayment of loans from available excess liquidity, and the repayment in full of a $1.6 million nonperforming loan. Residential real estate loans declined by $3.1 million due to accelerated repayments and the Company’s termination of residential lending in 2017. Total deposits decreased by $8.7 million, as a $39.7 million increase in core retail and business deposits was offset by a $48.4 million decline in retail and wholesale certificates of deposit.

Total loans declined by $165.4 million for the year ended December 31, 2020, primarily due to a $111.5 million decline in multi-family mortgage loans and a $56.3 million decline in commercial line of credit balances resulting from COVID-19 fiscal stimulus payments to healthcare providers. Total deposits increased by $108.8 million, primarily due to a $257.8 million increase in core retail and business deposits, partially offset by a $93.9 million decrease in retail certificates of deposit, and a $55.2 million decrease in wholesale certificates of deposits. As a result of the changes in the loan and deposit portfolios, the Company’s liquid assets were 31.5% of total assets at December 31, 2020.

The Company’s asset quality remained stable in 2020. The ratio of nonperforming loans to total loans was 0.12% and the ratio of nonperforming assets to total assets was 0.09% at December 31, 2020. Nonperforming commercial-related loans represented 0.03% of total commercial-related loans at December 31, 2020. Our allowance for losses on loans and leases increased to 0.77% of total loans as of December 31, 2020, compared to 0.65% at December 31, 2019, reflecting the increased inherent credit risks arising from the COVID-19 pandemic.

The Company’s capital position remained strong, with a Tier 1 leverage ratio of 10.79% at December 31, 2020. Throughout 2020, the Company maintained its quarterly dividend rate at $0.10 per common share. The Company repurchased 508,699 common shares during the year ended December 31, 2020, which represented 3.3% of the common shares that were outstanding on December 31, 2019. The Company’s book value per share increased in 2020 by 2.6% to $11.71 per share at December 31, 2020.

F. Morgan Gasior, the Chairman and CEO of the Company, said “The Company ended 2020 in a strong financial condition, with excellent asset quality and considerably more liquid assets. Our financial results for 2020 reflect the significant impact of the material declines in interest rates, increases in market and borrower liquidity due to coronavirus pandemic fiscal and monetary stimulus actions, and our continued emphasis on consistent credit risk management. Notwithstanding the disruption caused by COVID-19, we increased our originations of commercial equipment finance transactions by 57% in 2020 due to the expansion of our product lines to include governmental, middle-market and small-ticket transactions. We also accelerated the development of our Commercial Finance credit products to include general commercial, governmental and certain specialty markets in addition to our Equipment Finance lessor credit and our healthcare lending capabilities. The continued expansion of our Equipment Finance and Commercial Finance products and originations capabilities in 2021 will help us deploy our significant excess liquidity and further enhance the diversification of our commercial credit portfolios. We also began to expand our Treasury Services capabilities, focusing on generating noninterest income and commercial deposits that align with our Equipment Finance, Commercial Real Estate and Commercial Finance credit products.”

Mr. Gasior added that “Despite the adverse impacts of the coronavirus pandemic and rapid changes in market conditions, we continue to believe that the actions we took in 2020 further enable us to achieve the asset generation that we need to meet our financial objectives. We will incur some additional expenses for personnel, marketing and technology to support these credit, business deposit and noninterest income generation activities, but we will seek to offset these costs as much as possible within our consistent operating expense discipline. As we progressively deploy our excess liquidity during 2021, we expect that the increases in income will accelerate our progress towards our financial return goals despite the challenging conditions.”

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 fourth quarter 2020 results in a conference call and webcast for stockholders and analysts on Wednesday, February 3, 2021 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 2253316. 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 Wednesday, February 24, 2021 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

ex_186772.htm

Exhibit 99.2

BANKFINANCIAL CORPORATION

FOURTH QUARTER 2020

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)

	2020												2019
	IVQ			IIIQ			IIQ			IQ			IVQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾		0.62	%		0.49	%		0.61	%		0.66	%		0.91	%
Return on equity (ratio of net income to average equity) ⁽¹⁾		5.63			4.50			5.42			5.52			7.71
Net interest rate spread ⁽¹⁾		2.92			2.69			2.90			3.19			3.23
Net interest margin ⁽¹⁾		3.03			2.85			3.09			3.44			3.50
Efficiency ratio ⁽²⁾		74.40			79.82			74.06			72.03			66.98
Noninterest expense to average total assets ⁽¹⁾		2.46			2.45			2.40			2.63			2.56
Average interest–earning assets to average interest–bearing liabilities		142.75			141.40			138.21			132.68			132.47
Number of full service offices		19			19			19			19			19
Employees (full time equivalents)		210			210			199			226			222

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	14,115		$	13,740		$	13,826		$	14,652		$	9,785
Interest-bearing deposits in other financial institutions		489,381			415,925			370,939			155,286			180,540
Securities, at fair value		23,829			42,048			59,437			63,853			60,193
Loans receivable, net		1,002,578			1,065,892			1,081,798			1,147,628			1,168,008
Other real estate owned, net		157			110			143			110			186
Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost		7,490			7,490			7,490			7,490			7,490
Premises and equipment, net		24,675			24,241			24,323			24,202			24,346
Bank-owned life insurance		19,015			18,996			18,986			18,977			18,945
Deferred taxes		2,741			3,520			3,615			3,644			3,873
Other assets		12,861			12,981			12,572			14,440			14,649
Total assets	$	1,596,842		$	1,604,943		$	1,593,129		$	1,450,282		$	1,488,015

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,393,544		$	1,402,244		$	1,388,155		$	1,253,751		$	1,284,757
Borrowings		4,000			4,000			4,000			—			61
Other liabilities		26,368			26,302			28,520			23,536			28,825
Total liabilities		1,423,912			1,432,546			1,420,675			1,277,287			1,313,643
Stockholders’ equity		172,930			172,397			172,454			172,995			174,372
Total liabilities and stockholders’ equity	$	1,596,842		$	1,604,943		$	1,593,129		$	1,450,282		$	1,488,015

⁽¹⁾	Annualized

⁽²⁾	The efficiency ratio represents noninterest expense, divided by the sum of net interest income and noninterest income.

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2020											2019			For the years ended December 31,
	IVQ			IIIQ			IIQ		IQ			IVQ			2020			2019
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	12,543		$	12,485		$	13,194	$	14,653		$	15,732		$	52,875		$	65,408
Total interest expense		947			1,488			1,869		2,684			3,105			6,988			13,217
Net interest income		11,596			10,997			11,325		11,969			12,627			45,887			52,191
Provision for (recovery of) loan losses		(271	)		(187	)		42		471			89			55			3,825
Net interest income after provision for (recovery of) loan losses		11,867			11,184			11,283		11,498			12,538			45,832			48,366
Noninterest income		1,541			1,264			1,163		1,398			1,648			5,366			6,172
Noninterest expense		9,774			9,787			9,249		9,628			9,562			38,438			38,641
Income before income tax		3,634			2,661			3,197		3,268			4,624			12,760			15,897
Income tax expense ⁽¹⁾		1,189			713			845		850			1,234			3,597			4,225
Net income	$	2,445		$	1,948		$	2,352	$	2,418		$	3,390		$	9,163		$	11,672
Basic and diluted earnings per common share	$	0.17		$	0.13		$	0.16	$	0.16		$	0.22		$	0.61		$	0.75

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	740		$	833		$	736	$	887		$	957		$	3,196		$	3,844
Loan servicing fees		363			44			82		63			273			552			451
Mortgage brokerage and banking fees		14			44			11		29			72			98			149
Gain on sale of equity securities		—			—			—		—			—			—			295
Loss on disposal of other assets		(3	)		—			—		(2	)		(25	)		(5	)		(44	)
Trust insurance commissions and annuities income		233			222			224		282			217			961			844
Earnings on bank-owned life insurance		19			10			9		32			31			70			136
Other		175			111			101		107			123			494			497
Total noninterest income	$	1,541		$	1,264		$	1,163	$	1,398		$	1,648		$	5,366		$	6,172

Noninterest Expense
Compensation and benefits	$	5,239		$	5,398		$	5,168	$	5,518		$	5,138		$	21,323		$	21,266
Office occupancy and equipment		1,978			1,860			1,723		1,800			1,727			7,361			7,075
Advertising and public relations		159			135			118		152			169			564			657
Information technology		741			781			808		864			921			3,194			3,272
Professional fees		412			341			289		314			446			1,356			1,307
Supplies, telephone, and postage		357			288			284		303			291			1,232			1,328
Amortization of intangibles		7			6			7		14			14			34			61
Nonperforming asset management		(8	)		57			57		40			(24	)		146			105
Operations of other real estate owned, net		4			23			7		(17	)		30			17			52
FDIC insurance premiums		107			105			102		34			—			348			127
Other		778			793			686		606			850			2,863			3,391
Total noninterest expense	$	9,774		$	9,787		$	9,249	$	9,628		$	9,562		$	38,438		$	38,641

⁽¹⁾	Income tax expense for the quarter and year ended December 31, 2020 includes a $200,000 valuation reserve related to the Company's Illinois NOL carryforward.

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2020												2019
	IVQ			IIIQ			IIQ			IQ			IVQ
LOANS
One–to–four family residential real estate	$	41,691		$	44,812		$	48,928		$	52,849		$	55,750
Multi–family mortgage		452,241			522,825			536,619			542,421			563,750
Nonresidential real estate		108,658			124,477			127,560			133,432			134,674
Construction and land		499			—			—			—			—
Commercial loans and leases ⁽¹⁾		405,057			379,638			374,606			424,112			418,343
Consumer		1,812			1,784			1,783			2,078			2,211
		1,009,958			1,073,536			1,089,496			1,154,892			1,174,728
Net deferred loan origination costs		371			367			458			848			912
Allowance for loan losses		(7,751	)		(8,011	)		(8,156	)		(8,112	)		(7,632	)
Loans, net	$	1,002,578		$	1,065,892		$	1,081,798		$	1,147,628		$	1,168,008

LOAN ORIGINATIONS ⁽²⁾
One–to–four family residential real estate	$	290		$	557		$	667		$	659		$	437
Multi–family mortgage		16,024			12,593			21,546			17,642			19,848
Nonresidential real estate		61			217			855			4,772			174
Construction and land		499			—			—			—			—
Commercial loans		72,441			40,439			110,080			151,098			134,330
Commercial equipment finance		75,491			58,864			18,036			46,503			33,183
Consumer		640			590			489			883			1,018
	$	165,446		$	113,260		$	151,673		$	221,557		$	188,990
Weighted average interest rate		4.16	%		4.04	%		4.13	%		4.55	%		5.41	%

LOAN PAYMENTS and PAYOFFS ⁽³⁾
One–to–four family residential real estate	$	3,396		$	4,711		$	4,586		$	3,511		$	5,317
Multi–family mortgage		86,003			26,630			27,814			38,213			33,916
Nonresidential real estate		15,881			3,159			6,583			6,740			5,854
Construction and land		—			—			—			—			88
Commercial loans		82,006			56,765			139,932			162,015			151,432
Commercial equipment finance		40,746			38,804			35,841			31,167			36,488
Consumer		614			580			755			989			796
	$	228,646		$	130,649		$	215,511		$	242,635		$	233,891
Weighted average interest rate		4.57	%		4.49	%		4.58	%		4.74	%		5.46	%

⁽¹⁾	Beginning in Q3 2020, commercial loans and leases are presented as one line item. Previously they were presented separately. Prior periods have been reclassified to conform with current presentation.
⁽²⁾	Loan originations include purchased loans, draws on revolving lines of credit and exclude loan renewals.
(3)	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)

	2020												2019
	IVQ			IIIQ			IIQ			IQ			IVQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate	$	925		$	465		$	662		$	476		$	512
Nonresidential real estate		296			1,870			288			288			288
Commercial loans and leases		—			—			833			—			—
		1,221			2,335			1,783			764			800

Loans past due over 90 days, still accruing - Investment-rated commercial leases		—			—			—			—			47

Other real estate owned - One–to–four family residential real estate		157			110			143			110			186

Nonperforming assets	$	1,378		$	2,445		$	1,926		$	874		$	1,033

Asset Quality Ratios
Nonperforming assets to total assets		0.09	%		0.15	%		0.12	%		0.06	%		0.07	%
Nonperforming loans to total loans⁽¹⁾		0.12			0.22			0.16			0.07			0.07
Nonperforming commercial-related loans to total commercial-related loans⁽²⁾		0.03			0.18			0.11			0.03			0.03
Nonperforming residential and consumer loans to total residential and consumer loans		2.13			1.00			1.31			0.87			0.88
Allowance for loan losses to nonperforming loans		634.81			343.08			457.43			1061.78			901.06

Concentrations of Credit
Commercial real estate for FFIEC concentration limits	$	540,837		$	622,273		$	637,777		$	648,991		$	699,434
% FFIEC total capital		321.95	%		366.52	%		374.58	%		381.15	%		393.32	%

Multi–family mortgage loans - 50% risk based capital qualified (included above)	$	238,124		$	278,271		$	235,176		$	281,962		$	336,287
% FFIEC total capital		141.75	%		163.90	%		138.12	%		165.60	%		197.58	%

⁽¹⁾	Nonperforming loans include nonaccrual loans and loans past due 90 days and still accruing.

⁽²⁾	Commercial-related loans include multi-family mortgage, nonresidential real estate, construction and land, and commercial loans and leases.

Page 5

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2020												2019
	IVQ			IIIQ			IIQ			IQ			IVQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate	$	486		$	517		$	501		$	440		$	568
Multi–family mortgage		—			—			—			—			206
Nonresidential real estate		84			1,196			2,790			89			90
Commercial loans and leases		5,891			1,296			1,261			1,423			136
Consumer		5			5			11			9			53
	$	6,466		$	3,014		$	4,563		$	1,961		$	1,053

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	8,011		$	8,156		$	8,112		$	7,632		$	7,603
Charge–offs:
One–to–four family residential real estate		(2	)		(2	)		—			(5	)		(105	)
Consumer		(18	)		(14	)		(17	)		(13	)		(11	)
		(20	)		(16	)		(17	)		(18	)		(116	)
Recoveries:
One–to–four family residential real estate		19			2			3			13			47
Multi–family mortgage		11			56			15			12			7
Commercial loans and leases		1			—			1			2			2
		31			58			19			27			56
Net recoveries (charge–offs)		11			42			2			9			(60	)
Provision for (recovery of ) loan losses		(271	)		(187	)		42			471			89
Ending balance	$	7,751		$	8,011		$	8,156		$	8,112		$	7,632

Allowance for loan losses to total loans		0.77	%		0.75	%		0.75	%		0.70	%		0.65	%
Net recoveries (charge–offs) ratio ⁽¹⁾		—			0.02			—			—			(0.02	)

⁽¹⁾	Annualized

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2020												2019
	IVQ			IIIQ			IIQ			IQ			IVQ
DEPOSITS
Noninterest–bearing demand	$	326,188		$	328,915		$	305,096		$	211,142		$	210,762
Interest–bearing NOW accounts		336,994			316,976			306,629			266,828			273,168
Money market accounts		297,801			283,236			268,143			247,227			245,610
Savings deposits		179,561			171,766			167,570			155,505			153,183
Certificates of deposit - retail		243,088			275,862			303,976			319,987			336,949
Certificates of deposit - wholesale		9,912			25,489			36,741			53,062			65,085
	$	1,393,544		$	1,402,244		$	1,388,155		$	1,253,751		$	1,284,757

SELECTED AVERAGE BALANCES
Total average assets	$	1,588,887		$	1,599,148		$	1,541,352		$	1,465,253		$	1,496,379
Total average interest–earning assets		1,524,087			1,534,324			1,475,901			1,400,539			1,429,300
Average loans		1,047,244			1,080,521			1,116,067			1,160,197			1,189,771
Average securities		36,180			52,265			66,750			62,919			64,658
Average stock in FHLB & FRB		7,490			7,490			7,490			7,490			7,490
Average other interest–earning assets		433,173			394,048			285,594			169,933			167,381
Total average interest–bearing liabilities		1,067,628			1,085,129			1,067,854			1,055,550			1,078,940
Average interest–bearing deposits		1,063,628			1,081,129			1,065,480			1,055,535			1,078,537
Average borrowings		4,000			4,000			2,374			15			403
Average stockholders’ equity		173,649			173,266			173,677			175,069			175,977

SELECTED YIELDS AND COST OF FUNDS ⁽¹⁾
Total average interest–earning assets		3.27	%		3.24	%		3.60	%		4.21	%		4.37	%
Average loans		4.62			4.43			4.57			4.72			4.82
Average securities		1.06			1.39			1.63			1.94			2.27
Average other interest–earning assets		0.18			0.19			0.24			1.54			1.94
Total average interest–bearing liabilities		0.35			0.55			0.70			1.02			1.14
Average interest–bearing deposits		0.35			0.55			0.71			1.02			1.14
Average cost of total deposits		0.27			0.42			0.56			0.85			0.95
Average cost of retail and commercial deposits		0.33			0.48			0.63			0.93			1.04
Average cost of wholesale deposits and borrowings		1.73			2.22			2.35			2.52			2.53
Average cost of funds		0.27			0.42			0.56			0.85			0.95
Net interest rate spread		2.92			2.69			2.90			3.19			3.23
Net interest margin		3.03			2.85			3.09			3.44			3.50

⁽¹⁾	Annualized

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2020												2019
	IVQ			IIIQ			IIQ			IQ			IVQ
CAPITAL RATIOS
BankFinancial Corporation ⁽¹⁾
Equity to total assets (end of period)		10.83	%		10.74	%		10.82	%		11.93	%		11.72	%
Tangible equity to tangible total assets (end of period)		10.83			10.74			10.82			11.93			11.72
Risk–based total capital ratio		20.07			18.68			17.84			17.35			17.23
Common Tier 1 (CET1)		19.20			17.84			17.03			16.56			16.48
Risk–based tier 1 capital ratio		19.20			17.84			17.03			16.56			16.48
Tier 1 leverage ratio		10.79			10.66			11.06			11.67			11.48
Tier 1 capital	$	171,240		$	170,271		$	170,242		$	170,788		$	171,524
BankFinancial, NA ⁽²⁾
Risk–based total capital ratio		18.84	%		17.80	%		17.04	%		16.53	%		16.38	%
Common Tier 1 (CET1)		17.97			16.96			16.22			15.75			15.63
Risk–based tier 1 capital ratio		17.97			16.96			16.22			15.75			15.63
Tier 1 leverage ratio		10.10			10.13			10.54			11.10			10.89
Tier 1 capital	$	160,236		$	161,770		$	162,108		$	162,158		$	162,455

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	8.78		$	7.22		$	8.40		$	8.81		$	13.08
High		9.10			8.70			9.63			13.28			14.14
Low		7.14			6.81			6.73			7.33			11.52
Common shares outstanding		14,769,765			14,824,628			14,890,628			15,072,268			15,278,464
Book value per share	$	11.71		$	11.63		$	11.58		$	11.48		$	11.41
Tangible book value per share	$	11.71		$	11.63		$	11.58		$	11.48		$	11.41
Cash dividends declared on common stock	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Dividend payout ratio		60.43	%		76.13	%		63.73	%		62.94	%		45.30	%
Stock repurchases	$	416		$	518		$	1,474		$	2,202		$	1,298
Stock repurchases – common shares		54,863			66,000			181,640			206,196			95,500

EARNINGS PER SHARE COMPUTATIONS
Net income	$	2,445		$	1,948		$	2,352		$	2,418		$	3,390
Weighted average basic and dilutive common shares outstanding		14,783,042			14,842,150			14,978,757			15,205,731			15,342,524
Basic and diluted earnings per common share	$	0.17		$	0.13		$	0.16		$	0.16		$	0.22

⁽¹⁾	As a small bank holding company, the Company is exempt from the Federal Reserve Board's risk-based capital and leverage rules. BankFinancial Corporation capital data is included for informational purposes only.

⁽²⁾	As a qualified community bank, the Bank is exempt from the Office of the Comptroller of the Currency's risk-based capital rules effective second quarter 2020. BankFinancial, NA capital data is included for informational purposes only.

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