BankFinancial : Second Quarter, 2020 (PDF 557kB)

BANKFINANCIAL CORPORATION

SECOND 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)

PERFORMANCE MEASUREMENTS

Return on assets (ratio of net income to average total assets) (1)

	2020					2019
	IIQ	IQ		IVQ	IIIQ	IIQ
	0.61%			0.66%	0.91%		1.05%			0.21%

Return on equity (ratio of net income to average equity) (1)				5.42				5.52			7.71			9.04			1.84
Net interest rate spread (1)			2.90				3.19			3.23			3.38			3.30
Net interest margin (1)				3.09				3.44			3.50			3.67			3.60
Efficiency ratio (2)			74.06				72.03			66.98			64.62			65.19
Noninterest expense to average total assets (1)				2.40				2.63			2.56			2.54			2.48
Average interest-earning assets to average interest-bearing
liabilities			138.21				132.68			132.47			131.18			131.66
Number of full service offices				19				19			19			19			19
Employees (full time equivalents)			199				226			222			223			231
SUMMARY STATEMENT OF FINANCIAL CONDITION			ASSETS
Cash and due from other financial institutions		$		13,826			$	14,652		$	9,785		$	13,074		$	13,998
Interest-bearing deposits in other financial institutions			370,939				155,286			180,540			127,719			89,609
Securities, at fair value				59,437				63,853			60,193			65,440			87,080
Loans receivable, net			1,081,798				1,147,628			1,168,008			1,213,948			1,267,454
Other real estate owned, net				143				110			186			269			497
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				24,323				24,202			24,346			24,598			24,923
Bank-owned life insurance			18,986				18,977			18,945			18,914			18,877
Deferred taxes				3,615				3,644			3,873			4,556			4,816
Other assets			12,572				14,440			14,649			15,974			19,178
Total assets		$		1,593,129			$	1,450,282		$	1,488,015		$	1,491,982		$	1,533,922
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$		1,388,155		$	1,253,751	$	1,284,757		$	1,288,825	$	1,330,207
Borrowings				4,000				-			61			1,253			798
Other liabilities			28,520				23,536			28,825			28,037			31,426
Total liabilities				1,420,675				1,277,287			1,313,643			1,318,115			1,362,431
Stockholders' equity			172,454				172,995			174,372			173,867			171,491
Total liabilities and stockholders' equity		$		1,593,129			$	1,450,282		$	1,488,015		$	1,491,982		$	1,533,922

1. Annualized
2. 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)

				2020											2019
				IIQ					IQ				IVQ				IIIQ				IIQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	13,194	$	14,653		$	15,732		$	16,628		$	16,522
Total interest expense				1,869					2,684					3,105					3,386					3,419
Net interest income		11,325					11,969					12,627					13,242					13,103
Provision for (recovery of) loan losses				42					471					89					(134)					3,957
Net interest income after provision for (recovery of) loan losses		11,283					11,498					12,538					13,376					9,146
Noninterest income				1,163					1,398					1,648					1,474					1,426
Noninterest expense		9,249					9,628					9,562					9,509					9,472
Income before income tax				3,197					3,268					4,624					5,341					1,100
Income tax expense		845					850					1,234					1,417					293
Net income			$	2,352				$	2,418				$	3,390				$	3,924				$	807
Basic and diluted earnings per common share
$	0.16			$	0.16				$	0.22				$	0.26				$	0.05
NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	736	$	887		$	957		$	983		$	974
Loan servicing fees				82					63					273					99					56
Mortgage brokerage and banking fees		11					29					72					28					21
Loss on disposal of other assets				-					(2)				(25)					-					-
Trust insurance commissions and annuities income		224					282					217					198					224
Earnings on bank-owned life insurance				9					32					31					37					38
Other		101					107					123					129					113
Total noninterest income			$	1,163				$	1,398				$	1,648				$	1,474				$	1,426
Noninterest Expense
Compensation and benefits	$	5,168	$	5,518		$	5,138		$	5,218		$	5,207
Office occupancy and equipment				1,723					1,800					1,727					1,879					1,624
Advertising and public relations		118					152					169					182					145
Information technology				808					864					921					892					753
Professional fees		289					235					359					213					237
Supplies, telephone, and postage				284					303					291					312					322
Amortization of intangibles		7					14					14					13					14
Nonperforming asset management				57					40					(24)					17					58
Operations of other real estate owned, net		7					(17)				30					19					47
FDIC insurance premiums				102					34					-					(127)					146
Other		686					685					937					891					919
Total noninterest expense			$	9,249				$	9,628				$	9,562				$	9,509				$	9,472

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

			2020							2019
			IIQ			IQ			IVQ		IIIQ			IIQ
LOANS
One-to-four family residential real estate	$	48,928	$	52,849	$	55,750		$	60,757	$	64,192
Multi-family mortgage			536,619			542,421			563,750			577,656			619,898
Nonresidential real estate		127,560			133,432			134,674			140,410			145,416
Construction and land			-			-			-			88			117
Commercial loans		126,609			158,049			145,714			163,846			153,709
Commercial leases			247,997			266,063			272,629			275,800			289,107
Consumer		1,783			2,078			2,211			2,052			1,861
			1,089,496			1,154,892			1,174,728			1,220,609			1,274,300
Net deferred loan origination costs		458			848			912			942			978
Allowance for loan losses			(8,156)			(8,112)			(7,632)			(7,603)			(7,824)
Loans, net	$	1,081,798		$	1,147,628		$	1,168,008		$	1,213,948		$	1,267,454

LOAN ORIGINATIONS (1)
One-to-four family residential real estate	$	667	$	659	$	437	$	721	$	836
Multi-family mortgage		21,546		17,004		19,848		6,960		9,258
Nonresidential real estate		855		5,410		174		387		4,100
Commercial loans		110,080		172,837		134,330		141,314		153,537
Commercial leases		18,036		24,764		33,183		30,998		34,959
Consumer		489		883		1,018		852		842
	$	151,673	$	221,557	$	188,990	$	181,232	$	203,532
Weighted average interest rate		4.13%		4.55%		5.41%		5.75%		6.27%
LOAN PAYMENTS and PAYOFFS (2)
One-to-four family residential real estate	$	4,586	$	3,511	$	5,317	$	4,127	$	3,415
Multi-family mortgage		27,814		38,213		33,916		49,374		23,685
Nonresidential real estate		6,583		6,708		5,854		6,802		7,165
Construction and land		-		-		88		28		27
Commercial loans		140,568		162,048		151,432		130,208		167,352
Commercial leases		35,109		31,004		36,488		44,035		39,633
Consumer		755		989		796		703		800
	$	215,415	$	242,473	$	233,891	$	235,277	$	242,077
Weighted average interest rate		4.58%		4.74%		5.46%		5.45%		5.91%

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)

			2020					2019
			IIQ		IQ			IVQ				IIIQ				IIQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One-to-four family residential real estate	$	662		$	476	$	512	$	1,163	$	928
Nonresidential real estate			288			288			288			284				2,083
Commercial leases		833			-			-				-				-
Nonaccrual loans			1,783			764			800				1,447				3,011
Loans past due over 90 days, still accruing - commercial leases			-			-			47				-				-
Other real estate owned - One-to-four family residential real estate			143			110			186				269				497

Nonperforming assets

$

1,926

$

874

$

1,033

$

1,716

$

3,508

Asset Quality Ratios
Nonperforming assets to total assets	0.12%	0.06%		0.07%		0.12%	0.23%
Nonperforming loans to total loans (1)		0.16		0.07		0.07		0.12		0.24
Nonperforming commercial-related loans to total commercial-related
loans (2)	0.11	0.03	0.03	0.02	0.17
Nonperforming residential and consumer loans to total residential
and consumer loans		1.31		0.87		0.88		1.85		1.40
Allowance for loan losses to nonperforming loans	457.43	1061.78		901.06		525.43	259.85
Concentrations of Credit
Commercial real estate for FFIEC concentration limits	$	637,777	$	648,991	$	699,434	$	688,887	$	734,567
% FFIEC total capital	374.58%	381.15%		393.32%		403.95%	437.62%
Multi-family mortgage loans - 50% risk-based capital qualified
(included above)	$235,176	$281,962	$336,287	$302,648	$286,910
% FFIEC total capital		138.12%		165.60%		197.58%		177.47%		170.93%
Commercial Leases - Investment rated	$	114,632	$	124,451	$	133,839	$	133,049	$	143,148
Commercial Leases - Other	133,365	141,612		138,790		142,751	145,959

1. Nonperforming loans include nonaccrual loans and loans past due 90 days and still accruing.
2. Commercial-relatedloans include Multi-family mortgage, Nonresidential, Construction and land, Commercial loans and Commercial leases.

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

		2020					2019
SUBSTANDARD PERFORMING LOANS		IIQ		IQ		IVQ		IIIQ		IIQ
One-to-four family residential real estate	$	501	$	440	$	568	$	577	$	487
Multi-family mortgage		-		-		206		211		213
Nonresidential real estate		2,790		89		90		93		93
Commercial loans		-		-		-		-		500
Commercial leases		1,261		1,423		136		-		-
Consumer		11		9		53		3		1
	$	4,563	$	1,961	$	1,053	$	884	$	1,294
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	8,112	$	7,632	$	7,603	$	7,824	$	8,354
Charge-offs:
One-to-four family residential real estate		-		(5)		(105)		(44)		(50)
Nonresidential real estate		-		-		-		(55)		-
Commercial loans		-		-		-		-		(4,443)
Consumer		(17)		(13)		(11)		(5)		(10)
Recoveries:		(17)		(18)		(116)		(104)		(4,503)
One-to-four family residential real estate		3		13		47		5		6
Multi-family mortgage		15		12		7		8		8
Commercial loans		1		2		2		4		2
		19		27		56		17		16
Net recoveries (charge-offs)		2		9		(60)		(87)		(4,487)
Provision for (recovery of) loan losses		42		471		89		(134)		3,957
Ending balance	$	8,156	$	8,112	$	7,632	$	7,603	$	7,824
Allowance for loan losses to total loans		0.75%		0.70%		0.65%		0.62%		0.61%
Net recoveries (charge-offs) ratio (1)		-		-		(0.02)		(0.03)		(1.38)
(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
				IIQ			IQ				IVQ			IIIQ		IIQ
DEPOSITS
Noninterest-bearing demand			$	305,096	$	211,142	$	210,762		$	208,347			$	213,966
Interest-bearing NOW accounts				306,629			266,828				273,168				274,752				278,405
Money market accounts				268,143			247,227				245,610				237,022				246,941
Savings deposits				167,570			155,505				153,183				149,431				153,414
Certificates of deposit - retail				303,976			319,987				336,949				344,327				348,685
Certificates of deposit - wholesale				36,741			53,062				65,085				74,946				88,796
			$	1,388,155		$	1,253,751			$	1,284,757			$	1,288,825			$	1,330,207
SELECTED AVERAGE BALANCES
Total average assets			$	1,541,352		$	1,465,253			$	1,496,379				1,498,380			$	1,529,033
Total average interest-earning assets				1,475,901			1,400,539				1,429,300				1,430,830				1,458,180
Average loans				1,116,067			1,160,197				1,189,771				1,239,774				1,297,548
Average securities				66,750			62,919				64,658				78,221				86,144
Average stock in FHLB & FRB				7,490			7,490				7,490				7,490				7,629
Average other interest-earning assets				285,594			169,933				167,381				105,345				66,859
Total average interest-bearing liabilities				1,067,854			1,055,550				1,078,940				1,090,766				1,107,540
Average interest-bearing deposits				1,065,480			1,055,535				1,078,537				1,089,596				1,106,439
Average borrowings				2,374			15				403				1,170				1,101
Average stockholders' equity				173,677			175,069				175,977				173,698				175,452
SELECTED YIELDS AND COST OF FUNDS (1):
Total average interest-earning assets				3.60%			4.21%				4.37%			4.61%			4.54%
Average loans				4.57			4.72				4.82				4.92				4.76
Average securities				1.63			1.94				2.27				2.58				2.80
Average other interest-earning assets				0.24			1.54				1.94				2.50				2.63
Total average interest-bearing liabilities				0.70			1.02				1.14				1.23				1.24
Average interest-bearing deposits				0.71			1.02				1.14				1.23				1.24
Average cost of total deposits				0.56			0.85				0.95				1.03				1.04
Average cost of retail and commercial deposits				0.63			0.93				1.04				1.13				1.13
Average cost of wholesale deposits and borrowings				2.35			2.52				2.53				2.48				2.39
Average cost of funds				0.56			0.85				0.95				1.03				1.04
Net interest rate spread				2.90			3.19				3.23				3.38				3.30
Net interest margin				3.09			3.44				3.50				3.67				3.60

(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
			IIQ		IQ			IVQ			IIIQ			IIQ
CAPITAL RATIOS
BankFinancial Corporation (1)
Equity to total assets (end of period)			10.82%		11.93%			11.72%			11.65%			11.18%
Tangible equity to tangible total assets (end of
period)		10.82		11.93			11.72			11.65			11.18
Risk-based total capital ratio			17.84		17.35			17.23			16.17			15.17
Common Tier 1 (CET1)		17.03		16.56			16.48			15.47			14.49
Risk-based tier 1 capital ratio			17.03		16.56			16.48			15.47			14.49
Tier 1 leverage ratio		11.06		11.67			11.48			11.43			11.04
Tier 1 capital		$	170,242	$	170,788		$	171,524		$	171,050		$	168,461
BankFinancial, NA (2)
Risk-based total capital ratio			17.04%		16.53%			16.38%			15.46%			14.46%
Common Tier 1 (CET1)		16.22		15.75			15.63			14.76			13.78
Risk-based tier 1 capital ratio			16.22		15.75			15.63			14.76			13.78
Tier 1 leverage ratio		10.54		11.10			10.89			10.90			10.49
Tier 1 capital		$	162,108	$	162,158		$	162,455		$	162,818		$	159,917
COMMON STOCK AND DIVIDENDS
Stock Prices:
Close		$	8.40	$	8.81		$	13.08		$	11.90		$	13.99
High		9.63		13.28			14.14			14.29			15.63
Low			6.73		7.33			11.52			11.10			13.44
Common shares outstanding		14,890,628		15,072,268			15,278,464			15,373,964			15,373,964
Book value per share		$	11.58	$	11.48		$	11.41		$	11.31		$	11.15
Tangible book value per share	$	11.58	$	11.48	$	11.41	$	11.31	$	11.15
Cash dividends declared on common stock		$	0.10	$	0.10		$	0.10		$	0.10		$	0.10
Dividend payout ratio		63.73%		62.94%			45.30%			39.18%			191.78%
Stock repurchases		$	1,474	$	2,202		$	1,298		$	-		$	4,001
Stock repurchases - shares		181,640		206,196			95,500			-			270,535
EARNINGS PER SHARE COMPUTATIONS
Net income		$	2,352	$	2,418		$	3,390		$	3,924		$	807
Weighted average basic and dilutive common shares
outstanding		14,978,757		15,205,731			15,342,524			15,373,964			15,472,618

Basic and diluted earnings per common share

$

0.16

$

0.16

$

0.22

$

0.26

$

0.05

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 OCC's risk-based capital rules effective second quarter 2020. BankFinancial, NA capital data is included for informational purposes only.

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