Form 8-K - Current report

 

 

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): May 9, 2024 

 

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: [phone]

 

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. ☐

 

 

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Item 8.01. Other Events.

On May 9, 2024, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the first quarter ended March 31, 2024 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.

 

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 May 9, 2024
	99.2	Quarterly Financial and Statistical Supplement
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

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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:	May 9, 2024		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 First Quarter 2024

 

Burr Ridge, Illinois - (May 9, 2024) BankFinancial Corporation (Nasdaq – BFIN) (“BankFinancial”) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and a Quarterly Financial and Statistical Supplement in Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”) today.

 

BankFinancial reported net income for the three months ended March 31, 2024 of $1.7 million, or $0.14 per common share. At March 31, 2024, BankFinancial had total assets of $1.480 billion, total loans of $1.008 billion, total deposits of $1.259 billion and stockholders' equity of $156 million.

 

In the first quarter of 2024, interest income increased by $422,000 due to our investment of scheduled loan and lease portfolio payments into short-term liquidity investments.  Interest expense increased by $327,000 due to higher interest rates paid on deposit accounts, as certain depositors sought to benefit from increases in short-term market rates.  Our net interest margin increased to 3.59%, compared to 3.48% on a tax-equivalent basis.

 

Noninterest income decreased by $164,000 due to a seasonal decline in VISA debit interchange income and a decline in other income compared to the fourth quarter of 2023.  The decrease was partially offset by an increase in Trust and Insurance income and a gain on the repurchase of $1.0 million of Subordinated notes.

 

Noninterest expense increased by $887,000 due in part to seasonal increases in employment benefits expenses ($280,000) and snow removal expenses ($198,000).  Nonperforming assets expenses increased by $232,000, primarily due to a $225,000 expense for the final resolution of pending litigation and an inter-creditor tax liability related to a middle market equipment finance transaction.   These expense items total approximately $703,000 or $0.04 per share on an after-tax basis. 

 

Cash & Cash Equivalent Assets

 

For the quarter ended March 31, 2024, cash and cash equivalent assets were 9% of total assets, compared to 12% of total assets at December 31, 2023. 

 

Investment Securities Portfolio

 

For the quarter ended March 31, 2024, total investment securities increased by $86.3 million due to $125 million in new investments in U.S. government-sponsored agencies at an average tax-equivalent yield of 5.72% and an average duration of 1.5 years. The investment securities portfolio had a weighted-average term to maturity of 1.4 years as of March 31, 2024, with an after-tax unrealized loss of $2.3 million or 1.5% of Tier 1 capital.  The new investment securities improved our interest rate risk balance and reduced our exposure to declining interest rates over the medium term. 

 

Loan Portfolio

 

Our loan portfolio declined by $42.8 million in the first quarter of 2024, primarily due to scheduled repayments of equipment finance transactions and low levels of loan originations in the equipment finance portfolio due to the lower market yields this asset class offered during the fourth quarter of 2023. The average yield on equipment finance portfolio repayments in the first quarter was 4.80%, contributing to an increase in the average yield on loans to 5.21% for the quarter ended March 31, 2024 from 4.99% for the quarter ended December 31, 2023.  Commercial line of credit utilization remained consistent intra-quarter, offset by quarter-end repayment activity in the lessor finance portfolio and a $3 million reduction in criticized and classified commercial line of credit balances related to resolution agreements with the borrowers.

 

Asset Quality

 

The ratio of nonperforming assets to total assets declined to 1.54% at March 31, 2024, inclusive of two U.S. Government equipment finance transactions in the total amount of $18.9 million.  Excluding these two U.S. Government transactions, our ratio of nonperforming assets to total assets would have been 0.27%.  Past due trends improved, and nonperforming asset resolution activity continued to accelerate during the first quarter of 2024.  As noted above, we concluded all bankruptcy and other litigation with respect to the nonperforming middle market credit exposure placed on nonaccrual status in June 2023.  The related equipment constitutes 81% of the $2.3 million total other foreclosed assets and is now being actively marketed pursuant to a six-month marketing plan.

 

Our allowance for credit losses increased to 0.81% of total loans at March 31, 2024, compared to 0.79% at December 31, 2023.

 

Deposit Portfolio

 

Total deposits decreased by $2.3 million, 0.2%, primarily due to seasonal activity by municipal depositors. Our cost of total retail and commercial deposits increased to 1.75% during the first quarter of 2024 from 1.59% at December 31, 2023.  Core deposits represented 82% of total deposits, with noninterest-bearing demand deposits representing 20% of total deposits at March 31, 2024.  Total commercial deposits were 21% of total deposits at March 31, 2024 and December 31, 2023.  FDIC-insured deposits were 85% of total deposits and collateralized public funds deposits were 1% of total deposits as of March 31, 2024.

 

 

 

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Capital Adequacy

 

The Company’s capital position remained strong, with a Tier 1 leverage ratio of 10.59% at March 31, 2024.  The Company repurchased 15,203 common shares during the quarter ended March 31, 2024 at a total cost of $156,000. The Company also repurchased $1.0 million of its Subordinated notes issued in 2021. The book value of the Company’s common shares increased to $12.52 at March 31, 2024 from $12.45 per share at December 31, 2023.

 

F. Morgan Gasior, the Chairman and CEO of the Company, said: “The continuing deployment of our liquidity at higher yields resulted in stable net interest income and a balanced interest rate risk position in an uncertain environment at March 31, 2024.  With our liquidity and Tier 1 tangible capital strength, we look forward to focusing on expanding our net interest margin via loan portfolio growth, strengthening our noninterest income and improving our operating expense efficiency during the second quarter and the remainder of 2024.”

 

Second Quarter 2024 Outlook

 

Loans

 

New loan origination pipelines improved late in the first quarter of 2024 from approximately $15 million as of December 31, 2023 to approximately $60 million in new commitments as of April 30, 2024.  The average pipeline time to close is approximately 80 days.  In the first quarter of 2024, we began marketing our new Community Finance business line of credit products to existing and new small business customers via our new dedicated Business Banking Department.   We also commenced initial marketing for our hybrid and universal Commercial Finance products in the late first quarter of 2024 following the conclusion of advanced product training for our Commercial Bankers.  In the second quarter of 2024, we released updated Lessor Finance products for independent equipment lessors, with an emphasis on working capital lines of credit, retained lease line of credit and residual equipment equity lines of credit supported by our Treasury Services Equipment Finance Paying Agency product.  We will commence new marketing to Healthcare Finance supply-chain participants in the second quarter of 2024.

 

For the second quarter of 2024, total loan balances are expected to increase by between 0% and 2% primarily due to higher loan originations activity.  Based on the expected current yields on commercial credit originations and scheduled repayments, we expect the total yield on the loan portfolio to increase between 0.10% to 0.15%. For the second half of 2024, we believe that quarterly loan growth similar to the second quarter of 2024 is achievable in the current interest rate environment, with total yields on the loan portfolio continuing to increase between 0.10% to 0.15% per quarter due to higher yields on loan originations.

 

Deposits

 

For the second quarter of 2024, total deposit balances are expected to decline between 0% to 2% due to seasonal tax payments and continued consumption of liquidity, particularly by commercial depositors.  We expect our cost of deposits to increase by 0.05% during the second quarter of 2024.  For the second half of 2024, we expect that total deposits may further decline by 1% per quarter and our cost of funds to further increase by 0.05% per quarter due to continued reductions in liquidity for both retail and commercial depositors, partially offset by modestly increasing balances from new business, commercial and Treasury Services customers.   

 

Cash & Cash Equivalent Assets

 

For the second quarter of 2024, we expect cash and cash equivalent assets to be between 9% and 12% of total assets.  For the second half of 2024, we expect cash and cash equivalent assets to be between 8% and 11% of total assets. 

 

Investments

 

For the second quarter of 2024, we expect the investment portfolio balances to decline between 0% and 5% as we utilize maturing investment proceeds for loan originations, maintaining short-term liquidity or funding deposit withdrawals.  For the second half of 2024, we expect investment portfolio balances to decline between 5% and 10%, depending on loan and deposit portfolio activity and opportunities for reinvestment at higher market interest rates.   As of March 31, 2024, we have $58.9 million in investment securities at an average yield of 1.70% maturing during the remainder of 2024.

 

Net Interest Margin

 

For the second quarter of 2024, based on the expected activity in the loan, deposit and investment portfolios, we expect our net interest margin to remain stable, due to the anticipated timing of loan originations later in the quarter.  For the second half of 2024, we expect our net interest margin to increase between 2% and 4% each quarter. 

 

Noninterest Income

 

For the second quarter of 2024, we expect noninterest income to remain stable.  For the second half of 2024, we expect noninterest income to grow between 3% and 5% per quarter due to higher revenues from retail deposit services, commercial/treasury services, trust services and bank-owned life insurance.

 

Noninterest Expense

 

For the second quarter of 2024, we expect noninterest expense to decline by approximately 6% to 8% due to seasonal differences and declines in nonperforming assets and foreclosed assets expenses compared to the first quarter of 2024.  For the second half of 2024, we expect noninterest expense to decline between 5% and 8% compared to the first half of 2024 as we achieve further operating efficiencies.

 

 

 

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The 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 U.S. Securities and Exchange Commission'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 Corporation is the holding company for BankFinancial, NA, a national bank providing banking, wealth management and fiduciary services to individuals, families and businesses in the Chicago metropolitan area and on a regional or national basis for commercial finance, equipment finance, commercial real estate finance and treasury management business customers.  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: [phone]		Gregg T. Adams President – Marketing & Sales BankFinancial, NA Telephone: [phone]

 

 

Exhibit 99.2

 

 

 

BANKFINANCIAL CORPORATION

 

First QUARTER 2024

 

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 unaudited 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.

 

 

 

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

		2024				2023
		IQ				IVQ				IIIQ				IIQ				IQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) (1)			0.46	%			0.56	%			0.63	%			0.61	%			0.68	%
Return on equity (ratio of net income to average equity) (1)			4.38				5.37				6.16				6.02				6.96
Net interest rate spread (1)			3.07				3.01				3.16				3.23				3.41
Net interest margin  (1) (2)			3.59				3.48				3.57				3.58				3.68
Efficiency ratio (3)			84.11				77.39				76.02				79.11				74.51
Noninterest expense to average total assets (1)			3.17				2.92				2.86				2.94				2.65
Average interest–earning assets to average interest–bearing liabilities			135.89				136.25				136.78				136.86				135.85
Number of full service offices			18				18				18				18				18
Employees (full time equivalents)			217				205				200				198				202
SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions		$	18,533			$	19,781			$	19,691			$	20,401			$	19,963
Interest-bearing deposits in other financial institutions			113,907				158,703				151,870				94,930				57,042
Interest-bearing time deposits in other financial institutions			30,748				29,513				2,725				2,977				2,977
Securities, at fair value			239,549				153,203				155,700				166,670				167,262
Loans receivable, net			1,007,980				1,050,761				1,105,604				1,170,767				1,225,288
Foreclosed assets, net			2,332				2,777				902				950				1,393
Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost			7,490				7,490				7,490				7,490				7,490
Premises held-for-sale			—				523				540				540				1,246
Premises and equipment, net			22,614				22,950				22,914				22,957				22,955
Bank-owned life insurance			18,382				18,469				18,556				18,644				18,731
Deferred taxes			4,159				4,512				4,979				5,476				5,395
Other assets			14,364				18,702				14,483				14,894				14,368
Total assets		$	1,480,058			$	1,487,384			$	1,505,454			$	1,526,696			$	1,544,110
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits		$	1,259,286			$	1,261,623			$	1,275,828			$	1,303,720			$	1,315,214
Borrowings			25,000				25,000				25,000				25,000				35,000
Subordinated notes, net of unamortized issuance costs			18,705				19,678				19,667				19,656				19,645
Other liabilities			21,036				25,700				31,204				26,017				21,892
Total liabilities			1,324,027				1,332,001				1,351,699				1,374,393				1,391,751
Stockholders’ equity			156,031				155,383				153,755				152,303				152,359
Total liabilities and stockholders’ equity		$	1,480,058			$	1,487,384			$	1,505,454			$	1,526,696			$	1,544,110

 

(1)	Annualized

(2)	On a tax equivalent basis (“TEB”) assuming a federal income tax rate of 21% and an average state income tax rate of 9.5%.
(3)	The efficiency ratio represents noninterest expense, divided by the sum of net interest income and noninterest income.

 

 

 

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

		2024				2023
		IQ				IVQ				IIIQ				IIQ				IQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income		$	17,345			$	16,923			$	16,894			$	16,178			$	16,160
Total interest expense			4,818				4,491				3,940				3,235				2,660
Net interest income			12,527				12,432				12,954				12,943				13,500
Provision for (recovery of) credit losses			12				317				136				(188	)			48
Net interest income after provision for (recovery of) credit losses			12,515				12,115				12,818				13,131				13,452
Noninterest income			1,461				1,625				1,240				1,239				313
Noninterest expense			11,766				10,879				10,790				11,220				10,292
Income before income tax			2,210				2,861				3,268				3,150				3,473
Income tax expense			500				782				899				838				840
Net income		$	1,710			$	2,079			$	2,369			$	2,312			$	2,633
Basic and diluted earnings per common share		$	0.14			$	0.17			$	0.19			$	0.18			$	0.21
NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees		$	809			$	836			$	836			$	830			$	816
Loan servicing fees			156				164				98				141				129
Trust insurance commissions and annuities income			450				347				290				276				367
Losses on sales of securities			—				—				—				—				(454	)
(Loss) gain on sale of premises and equipment			(75	)			—				—				13				(4	)
Valuation adjustment on bank premises held-for-sale			—				(17	)			—				(32	)			(553	)
Loss on bank-owned life insurance			(87	)			(87	)			(88	)			(87	)			(84	)
Gain on repurchase of Subordinated notes			107				—				—				—				—
Other			101				382				104				98				96
Total noninterest income		$	1,461			$	1,625			$	1,240			$	1,239			$	313
Noninterest Expense
Compensation and benefits		$	6,052			$	5,679			$	5,369			$	5,629			$	5,555
Office occupancy and equipment			2,241				1,937				2,046				2,031				2,038
Advertising and public relations			90				139				171				262				190
Information technology			1,002				974				944				965				849
Professional fees			454				292				366				355				317
Supplies, telephone, and postage			286				289				311				295				359
FDIC insurance premiums			161				207				222				282				154
Other			1,480				1,362				1,361				1,401				830
Total noninterest expense		$	11,766			$	10,879			$	10,790			$	11,220			$	10,292

 

 

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

		2024				2023
		IQ				IVQ				IIIQ				IIQ				IQ
LOANS
One–to–four family residential real estate		$	18,247			$	18,945			$	19,233			$	20,448			$	21,475
Multi-family residential real estate			526,087				527,460				528,251				542,165				544,673
Nonresidential real estate			110,319				118,016				117,641				120,505				123,360
Commercial loans and leases			360,328				393,321				447,687				495,520				544,216
Consumer			1,248				1,364				1,351				1,355				1,596
			1,016,229				1,059,106				1,114,163				1,179,993				1,235,320
Allowance for credit losses			(8,249	)			(8,345	)			(8,559	)			(9,226	)			(10,032	)
Loans, net		$	1,007,980			$	1,050,761			$	1,105,604			$	1,170,767			$	1,225,288
LOAN ORIGINATIONS (1)
One–to–four family residential real estate		$	173			$	758			$	137			$	128			$	173
Multi-family residential real estate			5,561				6,226				5,902				6,686				17,097
Nonresidential real estate			—				3,183				834				200				5,436
Commercial loans			158,172				145,930				172,081				157,704				181,227
Equipment finance			3,427				8,141				14,442				7,290				24,623
Consumer			471				617				514				539				565
		$	167,804			$	164,855			$	193,910			$	172,547			$	229,121
Weighted average interest rate			9.04	%			9.09	%			9.11	%			9.24	%			8.67	%
LOAN PAYMENTS and PAYOFFS (2)
One–to–four family residential real estate		$	852			$	1,049			$	1,409			$	1,139			$	1,826
Multi-family residential real estate			6,931				7,336				19,784				9,095				10,151
Nonresidential real estate			7,684				3,278				3,253				2,934				1,967
Commercial loans			161,429				148,964				176,493				169,402				168,461
Equipment finance			34,669				55,433				56,844				43,567				45,250
Consumer			612				565				529				675				615
		$	212,177			$	216,625			$	258,312			$	226,812			$	228,270
Weighted average interest rate			8.25	%			7.85	%			7.86	%			8.35	%			8.20	%

 

(1)	Loan originations include purchased loans, draws on revolving lines of credit and exclude loan renewals.

(2)	Loan payments and payoffs exclude loan renewals.

 

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

		2024				2023
		IQ				IVQ				IIIQ				IIQ				IQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate		$	34			$	37			$	40			$	45			$	55
Multi–family residential real estate			—				—				—				148				—
Equipment finance			20,475				21,294				23,468				23,965				8,807
			20,509				21,331				23,508				24,158				8,862
Loans past due over 90 days still accruing			—				1,007				6,245				—				—
Foreclosed assets, net
Other real estate owned			—				405				468				472				472
Other foreclosed assets			2,332				2,372				434				478				921
			2,332				2,777				902				950				1,393
Nonperforming assets		$	22,841			$	25,115			$	30,655			$	25,108			$	10,255
Asset Quality Ratios
Nonperforming assets to total assets			1.54	%			1.69	%			2.04	%			1.64	%			0.66	%
Nonperforming loans to total loans (1)			2.02				2.11				2.67				2.05				0.72
Nonperforming commercial-related loans to total commercial-related loans (2)			2.05				2.15				2.72				2.08				0.73
Nonperforming residential and consumer loans to total residential and consumer loans			0.17				0.18				0.19				0.21				0.24
Allowance for credit losses to nonperforming loans			40.22				37.36				28.77				38.19				113.20
Concentrations of Credit
Commercial real estate for FFIEC concentration limits		$	620,694			$	624,575			$	624,469			$	641,022			$	645,768
% FFIEC total capital			364.28	%			370.83	%			363.55	%			372.44	%			374.63	%
Multi–family mortgage loans - 50% risk based capital qualified (included above)		$	297,958			$	315,179			$	248,128			$	175,902			$	122,213
% FFIEC total capital			174.87	%			187.13	%			144.45	%			102.20	%			70.90	%

 

(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, and commercial loans and leases.

 

Page 4

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

		2024				2023
		IQ				IVQ				IIIQ				IIQ				IQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate		$	204			$	272			$	282			$	272			$	280
Multi–family residential real estate			—				—				—				—				148
Nonresidential real estate			465				—				—				—				—
Commercial loans and leases			3,606				4,056				5,685				3,759				3,846
Consumer			5				3				3				5				5
		$	4,280			$	4,331			$	5,970			$	4,036			$	4,279
ALLOWANCE FOR CREDIT LOSSES
Beginning balance		$	8,345			$	8,559			$	9,226			$	10,032			$	8,129
Impact of adopting ASC 326			—				—				—				—				1,907
Charge–offs:
One-to-four family residential real estate			—				(1	)			—				—				—
Commercial loans and leases			(158	)			(570	)			(889	)			(638	)			(79	)
Consumer			(13	)			(9	)			(14	)			(7	)			(22	)
			(171	)			(580	)			(903	)			(645	)			(101	)
Recoveries:
One-to-four family residential real estate			3				1				32				7				5
Multi-family residential real estate			6				5				4				6				5
Commercial loans and leases			5				50				20				6				1
Consumer			—				—				—				—				1
			14				56				56				19				12
Net charge–offs			(157	)			(524	)			(847	)			(626	)			(89	)
Provision for (recovery of) credit losses - loans			61				310				180				(180	)			85
Ending balance		$	8,249			$	8,345			$	8,559			$	9,226			$	10,032
Allowance for credit losses to total loans			0.81	%			0.79	%			0.77	%			0.78	%			0.81	%
Net charge–offs ratio (1)			(0.06	)			(0.19	)			(0.30	)			(0.21	)			(0.03	)

 

(1)	Annualized

 

Page 5

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

		2024				2023
		IQ				IVQ				IIIQ				IIQ				IQ
DEPOSITS
Noninterest–bearing demand		$	256,698			$	260,851			$	258,318			$	278,170			$	287,493
Interest–bearing NOW accounts			297,010				306,548				326,874				349,374				360,441
Money market accounts			309,695				297,074				291,154				271,194				273,256
Savings deposits			171,521				174,759				178,318				190,277				200,659
Certificates of deposit - retail			224,362				222,391				220,915				214,456				193,116
Certificates of deposit - wholesale			—				—				249				249				249
		$	1,259,286			$	1,261,623			$	1,275,828			$	1,303,720			$	1,315,214
SELECTED AVERAGE BALANCES
Total average assets		$	1,484,332			$	1,492,759			$	1,511,422			$	1,526,246			$	1,553,445
Total average interest–earning assets			1,415,175				1,425,504				1,444,259				1,459,369				1,494,248
Average loans			1,031,256				1,088,172				1,141,788				1,206,175				1,225,636
Average securities			186,339				161,772				167,046				173,350				209,871
Average stock in FHLB & FRB			7,490				7,490				7,490				7,490				7,490
Average other interest–earning assets			190,090				168,070				127,935				72,354				51,251
Total average interest–bearing liabilities			1,041,381				1,046,249				1,055,874				1,066,332				1,099,950
Average interest–bearing deposits			996,741				1,001,576				1,011,212				1,021,023				1,066,321
Average borrowings and Subordinated notes			44,640				44,673				44,662				45,309				33,629
Average stockholders’ equity			156,115				154,927				153,796				153,703				151,417
SELECTED YIELDS AND COST OF FUNDS (1)
Total average interest–earning assets			4.93	%			4.71	%			4.64	%			4.45	%			4.39	%
Average loans			5.21				4.99				4.96				4.77				4.76
Average securities (TEB) (2)			2.96				2.12				1.95				2.03				2.27
Average other interest–earning assets			5.51				5.48				5.40				5.09				4.64
Total average interest–bearing liabilities			1.86				1.70				1.48				1.22				0.98
Average interest–bearing deposits			1.75				1.59				1.36				1.08				0.87
Average cost of total deposits			1.39				1.26				1.07				0.85				0.70
Average cost of retail and commercial deposits			1.75				1.59				1.36				1.08				0.87
Average cost of wholesale deposits, borrowings and Subordinated notes			4.34				4.18				4.18				4.21				4.34
Average cost of funds			1.49				1.36				1.18				0.96				0.79
Net interest rate spread			3.07				3.01				3.16				3.23				3.41
Net interest margin (TEB) (2)			3.59				3.48				3.57				3.58				3.68

 

(1)	Annualized
(2)	On a tax equivalent basis assuming a federal income tax rate of 21% and an average state income tax rate of 9.5%.

 

Page 6

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

		2024				2023
		IQ				IVQ				IIIQ				IIQ				IQ
CAPITAL RATIOS
BankFinancial Corporation (1)
Equity to total assets (end of period)			10.54	%			10.45	%			10.21	%			9.98	%			9.87	%
Risk–based total capital ratio			20.73				20.70				19.13				17.75				16.98
Common Tier 1 (CET1)			17.75				17.66				16.30				15.05				14.34
Risk–based tier 1 capital ratio			17.75				17.66				16.30				15.05				14.34
Tier 1 leverage ratio			10.59				10.54				10.38				10.23				10.03
Tier 1 capital		$	157,062			$	157,246			$	156,780			$	156,050			$	155,789
BankFinancial, NA (2)
Risk–based total capital ratio			19.30	%			18.96	%			17.90	%			16.64	%			15.88	%
Common Tier 1 (CET1)			18.43				18.13				17.10				15.83				15.04
Risk–based tier 1 capital ratio			18.43				18.13				17.10				15.83				15.04
Tier 1 leverage ratio			11.03				10.85				10.93				10.80				10.52
Tier 1 capital		$	162,715			$	161,037			$	164,172			$	163,806			$	163,249
COMMON STOCK AND DIVIDENDS
Stock Prices:
Close		$	10.50			$	10.26			$	8.62			$	8.18			$	8.75
High			11.12				10.76				9.11				8.94				10.59
Low			9.65				8.31				7.98				7.17				8.55
Common shares outstanding			12,460,678				12,475,881				12,547,390				12,600,478				12,693,993
Book value per share		$	12.52			$	12.45			$	12.25			$	12.09			$	12.00
Cash dividends declared on common stock		$	0.10			$	0.10			$	0.10			$	0.10			$	0.10
Dividend payout ratio			72.94	%			60.33	%			53.16	%			54.88	%			48.36	%
Stock repurchases		$	156			$	676			$	471			$	744			$	502
Stock repurchases – shares			15,203				71,509				53,088				93,515				48,604
EARNINGS PER SHARE COMPUTATIONS
Net income		$	1,710			$	2,079			$	2,369			$	2,312			$	2,633
Weighted average basic and dilutive common shares outstanding			12,468,052				12,526,673				12,578,494				12,667,129				12,721,841
Basic and diluted earnings per common share		$	0.14			$	0.17			$	0.19			$	0.18			$	0.21

 

(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 qualifying community bank pursuant to Section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, the Bank elected to adopt the Community Bank Leverage Ratio requirement in 2020. The Community Bank Leverage Ratio is equal to the Bank's Tier 1 Leverage Ratio.  Other BankFinancial, NA capital data is included for informational purposes only.

 

Page 7

Document And Entity Information	May 09, 2024
Document Information [Line Items]
Entity, Registrant Name	BANKFINANCIAL CORPORATION
Document, Type	8-K
Document, Period End Date	May 09, 2024
Entity, Incorporation, State or Country Code	MD
Entity, File Number	0-51331
Entity, Tax Identification Number	75-3199276
Entity, Address, Address Line One	60 North Frontage Road
Entity, Address, City or Town	Burr Ridge
Entity, Address, State or Province	IL
Entity, Address, Postal Zip Code	60527
City Area Code	800
Local Phone Number	894-6900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	BFIN
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001303942

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