-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cx+DgeL3zRGYw7xTs2a0hA47muAwIze+UB23TitlhR9bnYtbCU9dBm1axxypS4pU hhTVLmgKsNRNOW/MvMZNyg== 0000943374-06-000411.txt : 20060302 0000943374-06-000411.hdr.sgml : 20060302 20060302163108 ACCESSION NUMBER: 0000943374-06-000411 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060301 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060302 DATE AS OF CHANGE: 20060302 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BankFinancial CORP CENTRAL INDEX KEY: 0001303942 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51331 FILM NUMBER: 06660230 BUSINESS ADDRESS: STREET 1: 15W060 NORTH FRONTAGE ROAD CITY: BURR RIDGE STATE: IL ZIP: 60527 BUSINESS PHONE: (800) 894-6900 MAIL ADDRESS: STREET 1: 15W060 NORTH FRONTAGE ROAD CITY: BURR RIDGE STATE: IL ZIP: 60527 8-K 1 form8kearningsrelmarch2006.txt FORM 8-K 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): March 1, 2006 BANKFINANCIAL CORPORATION -------------------------- (Exact Name of Registrant as Specified in Charter) Maryland 0-25233 75-3199276 -------------------------- ------------------ --------------- (State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer of Incorporation) Identification No.) 15W060 North Frontage Road, Burr Ridge, Illinois 60527 - ------------------------------------------------ ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (630) 242-7700 -------------- Not Applicable ----------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition --------------------------------------------- On March 1, 2006, the Company issued a press release reporting earnings for the three months and for the year ended December 31, 2005. The press release is included as Exhibit 99 to this report. The information included in Exhibit 99 is considered to be "furnished" under the Securities Exchange Act of 1934. Item 9.01. Financial Statements and Exhibits --------------------------------- The Index of Exhibits immediately precedes the attached 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 DATE: March 1, 2006 By: /s/ F. Morgan Gasior -------------------------------------------- F. Morgan Gasior Chairman of the Board, Chief Executive Officer and President EXHIBIT INDEX The following exhibits are furnished as part of this report: Exhibit No. Description ----------- ------------ 99 Press Release of BankFinancial Corporation EXHIBIT 99 PRESS RELEASE OF BANKFINANCIAL CORPORATION EX-99.1 2 ex99form8kmarch2006.txt PRESS RELEASE BankFinancial ------------- 15W060 North Frontage Road Burr Ridge, Illinois 60527 FOR IMMEDIATE RELEASE BankFinancial Corporation Reports Net Income of $2.9 million, or $0.13 per Share for Fourth Quarter of 2005. Burr Ridge, Illinois - (March 1, 2006) BankFinancial Corporation (Nasdaq - BFIN) ("BankFinancial") today reported net income of $2.9 million for the three months ended December 31, 2005, and basic earnings per share of $0.13 for this three-month period. For the year ended December 31, 2005, BankFinancial reported net income of $11.1 million, and basic earnings per share of $0.29. BankFinancial's basic earnings per share for 2005 only reflect earnings during the period after June 23, 2005, the date of BankFinancial's mutual-to-stock conversion, because no common shares were outstanding before then. Overview Net income for the fourth quarter of 2005 was $2.9 million, compared to $3.7 million for the third quarter of 2005. Our third quarter net income was favorably affected by two non-recurring items - a tax recovery of $473,000 and approximately $150,000 in pre-tax net interest income on stock subscription order receipts relating to our mutual-to-stock conversion that we refunded during the third quarter. Our fourth quarter net income included a $281,000 pre-tax expense relating to the accelerated amortization of a purchase accounting adjustment resulting from the pre-payment of a loan that we acquired in our acquisition of Success Bancshares. We also increased our allowance for loan and lease losses with a provision of $524,000 in the fourth quarter primarily to support loan growth, compared to a $334,000 provision in the third quarter. Net loans receivable increased by $96.2 million during the fourth quarter. We maintained our focus on deploying conversion proceeds into targeted loan categories such as multi-family real estate loans (an increase of $37.3 million, or 15.4%), commercial leases (an increase of $29.6 million, or 32.1%) and commercial loans (an increase of $4.5 million, or 6.9%). This level of loan growth was caused in part by seasonal and market factors and is not necessarily indicative of future loan growth. Future loan growth could also be adversely affected by our unwillingness to compete for loans by relaxing our historical underwriting standards. Our allowance for loan and lease losses totaled $11.5 million at the end of the fourth quarter - an increase of approximately $583,000 primarily due to fourth quarter loan growth - representing 0.93% of total loans and 201% of nonperforming loans. Our ratio of nonperforming loans to total loans declined from 0.63% in the third quarter to 0.46% in the fourth quarter. We experienced some net interest margin compression in the fourth quarter due to the flat yield curve and highly competitive loan and deposit pricing in the Chicago banking market. Although the loan growth that we experienced improved interest income - yields on loans increased by 4 basis points and yield on earning assets increased by 17 basis points - this increase was surpassed by a 39 basis point increase in our deposit costs. As a result, our net interest margin declined 4 basis points from 3.65% in the third quarter to 3.61% in the fourth quarter, and our net interest rate spread declined 16 basis points from 3.07% in the third quarter to 2.91% in the fourth quarter. The accelerated purchase accounting adjustment that we recorded in the fourth quarter reduced our net interest rate spread by 7 basis points, while the net interest earned on subscription order receipts in the third quarter added 4 basis points to our third quarter net interest margin and interest rate spread. Our noninterest expense increased $119,000, or 1.0%, in the fourth quarter. The increase was due in substantial part to increases in utility and real estate tax expenses, advertising expenses relating to deposit origination initiatives, and information technology expenses relating to the design and implementation of enhancements to our corporate performance management and reporting systems. Partially offsetting these increases were declines in consulting, legal and other expenses. Our net income was $11.1 million for the year ended December 31, 2005, compared to net income of $1.5 million in 2004. Our 2004 net income was unfavorably affected by impairment charges that we recorded on Fannie Mae and Freddie Mac floating rate preferred stocks and yield adjustment amortization expenses resulting from our prepayment of certain Federal Home Loan Bank advances. Our mutual-to-stock conversion was completed on June 23, 2005, and our financial condition and results of operation after that date include the favorable impact of the net proceeds of the conversion. Our 2005 net income includes pre-tax compensation expenses in the amount of $718,000 relating to the ESOP that we established in connection with the conversion. We entered into an agreement during the fourth quarter to acquire University National Bank, a privately held community bank with $111 million in assets located in the Hyde Park community of Chicago. The transaction is presently scheduled to close in the second quarter of 2006. We expect University National Bank's strong core deposit base and low loan to deposit ratio will help mitigate future net interest margin compression pressures. Conference Call BankFinancial's executive management will hold a conference call to discuss the contents of this news release, as well as business and financial highlights, on Friday, March 3, 2006, at 9:30 a.m. CST. The telephone number for the conference call is 866-700-0133 and the participant passcode is 50155679. The conference call will also be available by webcast within the Stockholder Information section of the company's web site: www.bankfinancial.com. About BankFinancial BankFinancial Corporation is the holding company for BankFinancial F.S.B., a full-service, community-oriented savings bank providing financial services to individuals, families and businesses through our 16 full-service banking offices, located in Cook, DuPage, Lake and Will counties, Illinois. At December 31, 2005, BankFinancial Corporation had total assets of $1.6 billion, total deposits of $1.1 billion and stockholders' equity of $329 million. BankFinancial Corporation's common stock is listed on the Nasdaq National Market under the symbol BFIN. Additional information may be found at the company's web site, www.bankfinancial.com. Page 2 Safe Harbor Certain statements made in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, the words "may," "will," "should," "would," "anticipate," "estimate," "expect," "plan," "believe," "intend," and similar expressions identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following without limitation: general, regional, and local economic conditions and their effect on interest rates, the company and its customers; credit risks and risks from concentrations (geographic and by industry) within the loan portfolio; changes in regulations or accounting policies affecting financial institutions; the costs and effects of litigation and of unexpected or adverse outcomes of such litigation; technological changes; acquisitions and integration of acquired business; the failure of assumptions underlying the establishment of resources for loan losses and estimations of values of collateral and various financial assets and liabilities; the outcome of efforts to manage interest rate or liquidity risk; competition; and acts of war or terrorism. The Company undertakes no obligation to release revisions to these forward-looking statements or to reflect events or conditions occurring after the date of this release. For Further Information Shareholders, Analysts and Investors: Media: Terence C. Wise Gregg T. Adams Vice President - Investor Relations Executive Vice President BankFinancial Corporation - Marketing and Sales Telephone: 630-242-7151 BankFinancial Corporation Telephone: 630-242-7226 Page 3 BANKFINANCIAL CORPORATION CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (Dollars in thousands; except per share) - (Unaudited)
December 31, December 31, 2005 2004 ------------ ------------- ASSETS Cash and due from other financial institutions $ 34,437 $ 27,867 Interest-bearing deposits in other financial institutions 3,589 1,431 ------------ ------------ Cash and cash equivalents 38,026 29,298 Securities available-for-sale, at fair value 248,238 268,093 Loans held-for-sale 375 5,531 Loans receivable, net of allowance for loan losses: December 31, 2005, $11,514; and December 31, 2004, $11,019 1,231,891 1,091,952 Stock in Federal Home Loan Bank, at cost 25,434 24,226 Premises and equipment, net 32,819 32,954 Accrued interest receivable 6,598 5,420 Goodwill 10,865 10,865 Core deposit intangible 8,248 9,882 Other assets 11,942 14,561 ------------ ------------ Total assets $ 1,614,436 $ 1,492,782 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits 1,067,874 1,115,696 Borrowings 191,388 264,742 Advance payments by borrowers taxes and insurance 7,969 7,074 Accrued interest payable and other liabilities 18,428 10,382 ------------ ------------ Total liabilities 1,285,659 1,397,894 Commitments and contingent liabilities Stockholders' equity Preferred Stock, $0.01 par value, 25,000,000 shares authorized, none issued or outstanding - - Common Stock, $0.01 par value, 100,000,000 shares authorized, 24,466,250 shares issued and outstanding, at December 31, 2005, none issued and outstanding at December 31, 2004 245 - Additional paid-in capital 240,235 - Retained earnings, substantially restricted 107,528 96,455 Unearned Employee Stock Ownership Plan shares (19,084) - Accumulated other comprehensive loss (147) (1,567) ------------ ------------ Total stockholders' equity 328,777 94,888 ------------ ------------ Total liabilities and stockholders' equity $ 1,614,436 $ 1,492,782 ============ ============
Page 4 BANKFINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands; except per share) - (Unaudited)
Three Months Ended Year Ended December 31, December 31, --------------------------------- ---------------------------------- 2005 2004 2005 2004 ---------------- ---------------- ---------------- ----------------- Interest and dividend income Loans, including fees $ 18,097 $ 14,981 $ 66,328 $ 56,630 Securities 2,659 2,239 11,640 8,144 Other 354 379 1,954 1,524 ---------- ---------- ---------- ---------- Total interest income 21,110 17,599 79,922 66,298 Interest expense Deposits 5,852 4,233 20,598 14,198 Borrowings 1,702 1,994 8,204 9,272 ---------- ---------- ---------- ---------- Total interest expense 7,554 6,227 28,802 23,470 ---------- ---------- ---------- ---------- Net interest income 13,556 11,372 51,120 42,828 Provision (credit) for loan losses 524 190 518 (22) ---------- ---------- ---------- ---------- Net interest income after provision (credit) for loan losses 13,032 11,182 50,602 42,850 Noninterest income Fees and service charges 1,557 1,491 5,950 5,503 Insurance commissions and annuities income 242 221 848 782 Gain on sale of loans 27 105 206 321 Gain on sale of securities - 180 - 599 Loan servicing fees 249 265 1,031 987 Amortization and impairment of servicing assets 18 (257) (508) (772) Operations of real estate owned - 22 4 509 Other 441 367 1,424 1,129 ---------- ---------- ---------- ---------- Total noninterest income 2,534 2,394 8,955 9,058 Noninterest expense Compensation and benefits 7,398 6,388 28,227 25,875 Office occupancy and equipment 1,377 1,306 5,058 5,112 Advertising and public relations 216 215 841 856 Data processing 814 718 2,967 2,765 Supplies, telephone, and postage 468 486 1,901 1,961 Amortization of intangibles 405 422 1,634 1,701 Loss on impairment of securities available for sale - 3,293 - 8,793 Other 832 909 3,578 3,652 ---------- ---------- ---------- ---------- Total noninterest expense 11,510 13,737 44,206 50,715 ---------- ---------- ---------- ---------- Income (loss) before income taxes 4,056 (161) 15,351 1,193 Income tax expense (benefit) 1,137 (257) 4,278 (264) ---------- ----------- ---------- ---------- Net income $ 2,919 $ 96 $ 11,073 $ 1,457 ========== ========== ========== ========== Earnings per basic share $ 0.13 N.A. 0.29 N.A. ========== ==========
N.A. = not applicable Page 5 BANKFINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) - (Unaudited)
Unearned Employee Accumulated Additional Stock Other Comprehensiv Common Paid-in Retained Ownership Comprehensive Income Stock Capital Earnings Plan Shares Income (Loss) Total (Loss) ------- --------- --------- ----------- ------------- ----- ----------- Balance at December 31, 2003 $ - $ - $94,998 $ - $ 1,689 $ 96,687 -------- ---------- ------- -------- --------- ---------- Comprehensive loss Net income - - 1,457 - - 1,457 $ 1,457 Change in other comprehensive loss, net of tax effects - - - - (3,256) (3,256) (3,256) -------- ---------- ------- -------- --------- ---------- -------- Total comprehensive loss $ (1,799) ======== Balance at December 31, 2004 $ - $ - $96,455 $ - $ (1,567) $ 94,888 Comprehensive income Net income - - 11,073 - - 11,073 $ 11,073 Change in other comprehensive income, net of tax effects - - - - 1,420 1,420 1,420 -------- ---------- ------- -------- --------- --------- -------- Total comprehensive income $ 12,493 ======== Net proceeds from common stock issued 245 240,007 - (19,573) - 220,679 ESOP shares earned - 228 - 489 - 717 -------- ---------- ------- -------- --------- ---------- Balance at December 31, 2005 $ 245 $ 240,235 107,528 $(19,084) $ (147) $ 328,777 ======== ========== ======= ======== ========= ==========
Page 6 BANKFINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST MARGIN Three Months Ended December 31, 2005 and 2004 (Dollars in thousands) - (Unaudited)
Three months ended December 31, 2005 Three months ended December 31, 2004 ------------------------------------- ------------------------------------- Average Average Outstanding Outstanding Balance Interest Yield/Rate(1) Balance Interest Yield/Rate(1) ----------- ---------- ----------- ----------- -------- ----------- Interest-earning assets: Loans $1,197,545 $ 18,097 6.04% $1,095,117 $ 14,981 5.47% Securities available-for-sale 266,167 2,659 4.00 267,589 2,239 3.35 Stock in FHLB 25,311 237 3.75 24,047 357 5.94 Other 12,182 117 3.84 4,411 22 2.00 ---------- ---------- -------- ---------- ---------- -------- Total interest-earning assets 1,501,205 21,110 5.62 1,391,164 17,599 5.06 ---------- ---------- Noninterest-earning assets 72,662 84,843 ---------- ---------- Total assets $1,573,867 $1,476,007 ========== ========== Interest-bearing liabilities: Savings deposits $ 120,373 239 0.79 $ 131,193 254 0.77 Money market deposits 246,569 2,123 3.44 209,671 980 1.87 NOW deposits 216,246 653 1.21 225,632 408 0.72 Certificates of deposit 348,707 2,837 3.25 448,133 2,591 2.31 ---------- ---------- -------- ---------- ---------- -------- Total deposits 931,895 5,852 2.51 1,014,629 4,233 1.67 Borrowings 182,613 1,702 3.73 242,543 1,994 3.29 ---------- ---------- -------- ---------- ---------- -------- Total interest-bearing liabilities 1,114,508 7,554 2.71 1,257,172 6,227 1.98 ---------- ---------- Noninterest-bearing liabilities 132,810 124,204 ---------- ---------- Total liabilities 1,247,318 1,381,376 Equity 326,549 94,631 ---------- ---------- Total liabilities and equity $1,573,867 $1,476,007 ========== ========== Net interest income $ 13,556 $ 11,372 ========== ========== Net interest rate spread (2) 2.91% 3.08% Net interest-earning assets (3) $ 386,697 $ 133,992 ========== ========== Net interest margin (4) 3.61% 3.27% Ratio of interest-earning assets to interest-bearing liabilities 134.70% 110.66%
(1) Annualized. (2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (3) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. (4) Net interest margin represents net interest income divided by average total interest-earning assets. Page 7 BANKFINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST MARGIN Three Months Ended December 31, 2005 and September 30, 2005 (Dollars in thousands) - (Unaudited)
Three months ended December 31, 2005 Three months ended September 30, 2005 ------------------------------------- ------------------------------------- Average Average Outstanding Outstanding Balance Interest Yield/Rate(1) Balance Interest Yield/Rate(1) ----------- ---------- ----------- ----------- -------- ----------- Interest-earning assets: Loans $1,197,545 $18,097 6.04% $1,130,131 $ 16,950 6.00% Securities available-for-sale 266,167 2,659 4.00 337,098 3,229 3.83 Stock in FHLB 25,311 237 3.75 25,043 308 4.92 Other 12,182 117 3.84 27,962 228 3.26 ---------- ------- -------- ---------- ---------- -------- Total interest-earning assets 1,501,205 21,110 5.62 1,520,234 20,715 5.45 ------- ---------- Noninterest-earning assets 72,662 87,043 ---------- ---------- Total assets $1,573,867 $1,607,277 ========== ========== Interest-bearing liabilities: Savings deposits $ 120,373 239 0.79 $ 125,949 249 0.79 Money market deposits 246,569 2,123 3.44 222,645 1,578 2.84 NOW deposits 216,246 653 1.21 239,294 583 0.97 Certificates of deposit 348,707 2,837 3.25 369,352 2,672 2.89 ---------- ------- -------- ---------- ---------- -------- Total deposits 931,895 5,852 2.51 957,240 5,082 2.12 Borrowings 182,613 1,702 3.73 191,076 1,755 3.67 ---------- ------- -------- ---------- ---------- -------- Total interest-bearing liabilities 1,114,508 7,554 2.71 1,148,316 6,837 2.38 ------- ---------- Noninterest-bearing liabilities 132,810 134,903 ---------- ---------- Total liabilities 1,247,318 1,283,219 Equity 326,549 324,058 ---------- ---------- Total liabilities and equity $1,573,867 $1,607,277 ========== ========== Net interest income $13,556 $ 13,878 ======= ========== Net interest rate spread (2) 2.91% 3.07% Net interest-earning assets (3) $ 386,697 $ 371,918 ========== ========== Net interest margin (4) 3.61% 3.65% Ratio of interest-earning assets to interest-bearing liabilities 134.70% 132.39%
(1) Annualized. (2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (3) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. (4) Net interest margin represents net interest income divided by average total interest-earning assets. Page 8 BANKFINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST MARGIN Years Ended December 31, 2005 and 2004 (Dollars in thousands) - (Unaudited)
Year ended December 31, 2005 Year ended December 31, 2004 ------------------------------------- ------------------------------------- Average Average Outstanding Outstanding Balance Interest Yield/Rate Balance Interest Yield/Rate ----------- ---------- ----------- ----------- -------- ----------- Interest-earning assets: Loans $1,131,374 $ 66,328 5.86% $1,091,293 $ 56,630 5.19% Securities available-for-sale 315,379 11,640 3.69 255,999 8,144 3.18 Stock in FHLB 24,870 1,208 4.86 23,521 1,420 6.04 Other 24,219 746 3.08 9,022 104 1.15 ---------- ---------- -------- ---------- ---------- -------- Total interest-earning assets 1,495,842 79,922 5.34 1,379,835 66,298 4.80 ---------- ---------- Noninterest-earning assets 88,837 86,107 ---------- ---------- Total assets $1,584,679 $1,465,942 ========== ========== Interest-bearing liabilities: Savings deposits $ 128,867 1,005 0.78 $ 134,491 825 0.61 Money market deposits 223,334 6,350 2.84 181,596 2,667 1.47 NOW deposits 268,404 2,290 0.85 232,193 1,249 0.54 Certificates of deposit 391,883 10,953 2.79 449,218 9,457 2.11 ---------- ---------- -------- ---------- ---------- -------- Total deposits 1,012,488 20,598 2.03 997,498 14,198 1.42 Borrowings 229,355 8,204 3.58 251,331 9,272 3.69 ---------- ---------- -------- ---------- ---------- -------- Total interest-bearing liabilities 1,241,843 28,802 2.32 1,248,829 23,470 1.88 ---------- ---------- Noninterest-bearing liabilities 129,204 122,616 ---------- ---------- Total liabilities 1,371,047 1,371,445 Equity 213,632 94,497 ---------- ---------- Total liabilities and equity $1,584,679 $1,465,942 ========== ========== Net interest income $ 51,120 $ 42,828 ========== ========== Net interest rate spread (1) 3.02% 2.92% Net interest-earning assets (2) $ 253,999 $ 131,006 ========== ========== Net interest margin (3) 3.42% 3.10% Ratio of interest-earning assets to interest-bearing liabilities 120.45% 110.49%
(1) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (2) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. (3) Net interest margin represents net interest income divided by average total interest-earning assets. Page 9
BANKFINANCIAL CORPORATION SELECTED FINANCIAL AND STATISTICAL DATA Latest Five Quarters (Dollars in thousands; except per share) - (Unaudited) PERFORMANCE MEASUREMENTS: 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- Return on assets (ratio of net income to average total assets) 0.74% 0.92% 0.68% 0.44% 0.03% Return on equity (ratio of net income to average equity) 3.58 4.56 9.12 6.65 0.41 Net interest rate spread 2.91 3.07 2.96 2.99 3.08 Net interest margin 3.61 3.65 3.18 3.19 3.27 Efficiency ratio 71.54 69.41 72.87 82.15 99.79 Noninterest expense to average total assets 2.93 2.83 2.55 2.88 3.72 Average interest-earning assets to average interest-bearing liabilities 134.70 132.39 111.42 110.21 110.66 Offices 16 16 16 16 16 Employees (full time equivalents) 451 449 429 442 446 - ------------------------------------------------------------------------------------------------------ SUMMARY INCOME STATEMENT: 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- Total interest income $ 21,110 $ 20,715 $ 20,055 $ 18,042 $ 17,599 Total interest expense 7,554 6,837 7,577 6,834 6,227 -------- -------- -------- --------- -------- Net interest income before provision 13,556 13,878 12,478 11,208 11,372 Provision (credit) for loan losses 524 334 (264) (76) 190 -------- -------- -------- --------- -------- Net interest income 13,032 13,544 12,742 11,284 11,182 Noninterest income 2,534 2,534 2,035 1,852 2,394 Noninterest expense 11,510 11,391 10,576 10,729 13,737 -------- -------- -------- --------- -------- Income (loss) before income tax 4,056 4,687 4,201 2,407 (161) Income tax expense (benefit) 1,137 990 1,380 771 (257) -------- -------- -------- --------- -------- Net income $ 2,919 $ 3,697 $ 2,821 $ 1,636 $ 96 ======== ======== ======== ========= ======== Earnings per basic share $ 0.13 $ 0.16 N.M. N.A. N.A. ======== ======== N.M. = not meaningful; N.A. = not applicable - ------------------------------------------------------------------------------------------------------ NONINTEREST INCOME AND EXPENSE: 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- Noninterest Income: Fee income $ 1,557 $ 1,623 $ 1,489 $ 1,281 $ 1,491 Insurance commissions and annuities income 242 265 229 112 221 Gain on sales of loans 27 50 46 83 105 Gain on sales of investment securities - - - - 180 Loan servicing fee income 249 257 262 263 265 Amortization and impairment of servicing Assets 18 (73) (328) (125) (257) REO operations - (1) (3) 8 22 Other 441 413 340 230 367 -------- -------- -------- -------- -------- Total noninterest income $ 2,534 $ 2,534 $ 2,035 $ 1,852 $ 2,394 ======== ======== ======== ======== ======== Noninterest Expense: Compensation $ 7,398 $ 7,335 $ 6,557 $ 6,937 $ 6,388 Office occupancy 1,377 1,275 1,191 1,215 1,306 Advertising 216 177 238 210 215 Data processing 814 777 710 666 718 Supplies, telephone and postage 468 490 450 493 486 Amortization of intangibles 405 410 409 410 422 Loss on impairment of securities available for sale - - - - 3,293 Other general & administrative 832 927 1,021 798 909 -------- -------- -------- -------- -------- Total noninterest expenses $ 11,510 $ 11,391 $ 10,576 $ 10,729 $ 13,737 ======== ======== ======== ======== ======== - -------------------------------------------------------------------------------------------------------
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BANKFINANCIAL CORPORATION SELECTED FINANCIAL AND STATISTICAL DATA Latest Five Quarters (Dollars in thousands; except per share) - (Unaudited) SUMMARY BALANCE SHEET: 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- ASSETS: Cash $ 34,437 $ 28,016 $ 26,035 $ 27,096 $ 27,867 Interest-bearing deposits and short term Investments 3,589 54,373 87,720 1,484 1,431 Securities available for sale, net 248,238 258,981 476,702 274,506 268,093 Loans held for sale 375 523 1,042 5,737 5,531 Loans receivable, net 1,231,891 1,135,709 1,100,119 1,090,316 1,091,952 Federal Home Loan Bank stock 25,434 25,197 24,889 24,558 24,226 Premises and equipment 32,819 32,810 33,008 33,046 32,954 Intangible assets 19,113 19,518 19,928 20,337 20,747 Other assets 18,540 17,953 17,280 18,417 19,981 ---------- ---------- ---------- ---------- ---------- Total assets $1,614,436 $1,573,080 $1,786,723 $1,495,497 $1,492,782 ========== ========== ========== ========== ========== LIABILITIES AND EQUITY: Deposits $1,067,874 $1,044,242 $1,230,945 $1,108,637 $1,115,696 Borrowings 191,388 181,252 213,775 272,073 264,742 Other liabilities 26,397 22,260 19,823 15,778 17,456 --------- --------- ---------- --------- ---------- Total liabilities 1,285,659 1,247,754 1,464,543 1,396,488 1,397,894 Stockholders' equity 328,777 325,326 322,180 99,009 94,888 ---------- ---------- ---------- ---------- ---------- Total liabilities and equity $1,614,436 $1,573,080 $1,786,723 $1,495,497 $1,492,782 ========== ========== ========== ========== ========== - -------------------------------------------------------------------------------------------------------- CAPITAL RATIOS: 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- BankFinancial Corporation: Equity to total assets (end of period) 20.36% 20.68% 18.03% 6.62% 6.36% Tangible equity to total assets (end of period) 19.41 19.68 17.11 5.33 5.04 BankFinancial FSB: Risk-based total capital ratio 19.01 19.91 19.75 10.50 10.35 Risk-based tier 1 capital ratio 18.21 19.11 18.96 9.68 9.53 Tier 1 leverage ratio 13.82 13.96 12.05 7.24 7.12 - -------------------------------------------------------------------------------------------------------- TOTAL DEPOSITS: 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- Non-interest-bearing demand $ 117,443 $ 109,022 $ 281,227 $ 104,893 $ 104,448 Interest-bearing NOW 227,893 219,457 222,759 227,764 232,968 Money market 248,871 236,285 210,251 209,617 205,933 Savings 123,260 122,783 130,761 132,933 132,009 Certificates of deposit 350,407 356,695 385,947 433,430 440,338 ---------- ---------- ---------- ---------- ---------- Total deposits $1,067,874 $1,044,242 $1,230,945 $1,108,637 $1,115,696 ========== ========== ========== ========== ========== - ---------------------------------------------------------------------------------------------------------
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BANKFINANCIAL CORPORATION SELECTED FINANCIAL AND STATISTICAL DATA Latest Five Quarters (Dollars in thousands; except per share) - (Unaudited) 2005 2004 ------------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- LOANS: One- to four-family residential real estate $ 404,196 $ 395,499 $ 363,952 $ 357,661 $ 362,701 Multi-family mortgage loans 280,238 242,910 236,467 239,363 241,713 Nonresidential real estate 275,418 266,898 271,949 276,330 277,380 Construction and land loans 80,705 74,523 77,070 68,606 59,369 Commercial loans 68,988 64,527 62,977 60,904 63,727 Commercial leases 121,898 92,268 87,427 87,352 86,362 Consumer loans 2,022 1,975 2,391 2,638 2,755 Other loans (including municipal) 5,219 5,492 5,754 5,785 6,044 ---------- ---------- ---------- ---------- ---------- Total loans 1,238,684 1,144,092 1,107,987 1,098,639 1,100,051 Loans in process 2,541 193 604 457 824 Net deferred loan origination costs 2,180 2,355 2,124 2,161 2,096 Allowance for loan losses (11,514) (10,931) (10,596) (10,941) (11,019) ---------- ---------- ---------- ---------- ---------- Loans, net $1,231,891 $1,135,709 $1,100,119 $1,090,316 $1,091,952 ========== ========== ========== ========== ========== - --------------------------------------------------------------------------------------------------------- CREDIT QUALITY RATIOS: 2005 2004 ------------------------------------------------ ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- Nonperforming Loans and Assets: Nonperforming loans $ 5,723 $ 7,280 $ 6,873 $ 6,176 $ 6,524 Real estate owned 153 - - - - ---------- ---------- ---------- ---------- ---------- Nonperforming assets $ 5,876 $ 7,280 $ 6,873 $ 6,176 $ 6,524 ========== ========== ========== ========== ========== Asset Quality Ratios: Nonperforming assets to total assets 0.36% 0.46% 0.38% 0.41% 0.44% Nonperforming loans to total loans 0.46 0.63 0.62 0.56 0.59 Allowance for loan losses to nonperforming loans 201.19 150.15 154.17 177.15 168.90 Allowance for loan losses to total loans 0.93 0.96 0.96 1.00 1.00 Net charge-off ratio (0.02) 0.00 0.03 0.00 0.01 - --------------------------------------------------------------------------------------------------------- ALLOWANCE FOR LOAN LOSSES: 2005 2004 ------------------------------------------------ ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- Beginning balance $ 10,931 $ 10,596 $ 10,941 $ 11,019 $ 10,850 Provision (credit) for loan losses 524 334 (264) (76) 190 Loans charged off (29) (1) (82) (3) (22) Recoveries 88 2 1 1 1 ---------- ---------- ---------- ---------- ---------- Ending balance $ 11,514 $ 10,931 $ 10,596 $ 10,941 $ 11,019 ========== ========== ========== ========== ========== - ---------------------------------------------------------------------------------------------------------
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BANKFINANCIAL CORPORATION SELECTED FINANCIAL AND STATISTICAL DATA Latest Five Quarters (Dollars in thousands; except per share) - (Unaudited) 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- SELECTED AVERAGE BALANCES: Average total assets $1,573,867 $1,607,277 $1,661,506 $1,491,570 $1,476,007 Average earning assets 1,501,205 1,520,234 1,568,763 1,403,804 1,391,164 Average total loans 1,197,545 1,130,131 1,104,190 1,104,598 1,095,117 Average investment securities 291,478 362,141 411,386 295,796 291,636 Average other earning assets 12,182 27,962 53,187 3,410 4,411 Average interest-bearing deposits $ 931,895 $ 957,240 $1,161,106 $1,000,877 $1,014,629 Average total borrowings 182,613 191,076 246,861 272,888 242,543 Average interest-bearing liabilities 1,114,508 1,148,316 1,407,967 1,273,765 1,257,172 Average total stockholders' equity 326,549 324,058 123,714 98,420 94,631 - ---------------------------------------------------------------------------------------------------------- 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- SELECTED YIELDS AND COST OF FUNDS: Average earning assets 5.62% 5.45% 5.11% 5.14% 5.06% Average total loans 6.04 6.00 5.75 5.58 5.47 Average investment securities 3.97 3.91 3.69 3.55 3.56 Average other earning assets 3.84 3.26 2.90 1.64 2.00 Average interest-bearing deposits 2.51 2.12 1.79 1.79 1.67 Average total borrowings 3.73 3.67 3.86 3.46 3.29 Average interest-bearing liabilities 2.71 2.38 2.15 2.15 1.98 Interest rate spread 2.91 3.07 2.96 2.99 3.08 Net interest margin 3.61 3.65 3.18 3.19 3.27 - --------------------------------------------------------------------------------------------------------- 2005 2004 ----------------------------------------------- ------ IVQ IIIQ IIQ IQ IVQ ---- ---- ---- ---- ---- EARNINGS PER SHARE COMPUTATIONS: Net income $ 2,919 $ 3,697 $ 2,821 $ 1,636 $ 96 Less: net income before conversion - - 2,821 1,636 96 ---------- ---------- -------- -------- -------- Net income available to common stockholders $ 2,919 $ 3,697 $ - $ - $ - ========== ========== ======== ======== ======== Average common shares outstanding 24,466,250 24,466,250 N.M. N.A. N.A. Less: unearned ESOP shares (1,920,152) (1,935,652) N.M. N.A. N.A. ---------- ---------- Weighted average common shares outstanding 22,546,098 22,530,598 N.M. N.A. N.A. ========== ========== Earnings per basic share $ 0.13 $ 0.16 N.M. N.A. N.A. ========== ========== - --------------------------------------------------------------------------------------------------------
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