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): May 8, 2007

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.)

15W060 North Frontage Road, Burr Ridge, Illinois	60527
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (800) 894-6900

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 8.01. Other Events.

On May 8, 2007, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 and a Quarterly Financial and Statistical Supplement. The press release also reported earnings for the three months ended March 31, 2007. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.

The information in the preceding paragraph, as well as Exhibits 99.1 and 99.2, is considered to be “furnished” under the Securities Exchange Act of 1934, and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01. Financial Statements and Exhibits.

(a) Not Applicable.

(b) Not Applicable.

(c) Exhibits.

Exhibit No.	Description
99.1	Press Release dated May 8, 2007
99.2	Quarterly Financial and Statistical Supplement

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: May 8, 2007	By:	/s/ F. Morgan Gasior
		F. Morgan Gasior
		Chairman of the Board, Chief Executive
		Officer and President

3

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

BankFinancial Corporation Reports First Quarter 2007 Earnings and

Filing of Quarterly Report on Form 10-Q

and Quarterly Financial and Statistical Supplement

with the Securities and Exchange Commission

Burr Ridge, Illinois - (May 8, 2007) BankFinancial Corporation (Nasdaq – BFIN) (“BankFinancial”) announced that it will file today its Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 and a Quarterly Financial and Statistical Supplement on Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”).

BankFinancial also reported net income of $1.7 million, or $0.08 per common share, for the three months ended March 31, 2007, compared to $3.1 million, or $0.14 per common share, for the three months ended March 31, 2006. Net income includes $1.3 million, or $0.04 per common share, of stock-based compensation expense for the three months ended March 31, 2007 compared to $384,000, or $0.01 per common share, for the three months ended March 31, 2006.

As previously reported, on March 26, 2007, BankFinancial’s Board of Directors has extended the expiration date of its current share repurchase authorization from March 31, 2007 until September 30, 2007, and has increased by 1,158,759 shares the number of shares that can be repurchased in accordance with the authorization. During the first quarter of this year, BankFinancial repurchased 1,131,974 shares at an aggregate cost of approximately $19.3 million.

At March 31, 2007, BankFinancial had total assets of $1.567 billion, total loans of $1.298 billion, total deposits of $1.106 billion and stockholders’ equity of $310 million.

The Quarterly Report on Form 10-Q and the Quarterly Financial and Statistical Supplement will be available today on BankFinancial’s website, www.bankfinancial.com on the “Stockholder Information” page, and through the EDGAR database on the SEC’s website, www.sec.gov.

BankFinancial’s management will review first quarter 2007 results in a conference call and webcast for stockholders and analysts on Wednesday, May 9, 2007 at 9:30 a.m. Central Standard Time (CST). The conference call may be accessed by calling (866) 356-4281 and using participant passcode 17835286. The conference call will be simultaneously webcast at www.bankfinancial.com, on the Stockholder Information page. For those persons unable to participate in the conference call, the webcast will be archived through 5:00 p.m. CST on May 23, 2007 on our website.

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 18 full-service banking offices, located in Cook, DuPage, Lake and Will Counties, Illinois. BankFinancial Corporation became a publicly-traded company on June 24, 2005, and its common stock trades on the Nasdaq Stock Market under the symbol BFIN.

“Forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 may be included in this release. A variety of factors could cause BankFinancial Corporation’s actual results to differ from those expected at the time of this release. Investors are urged to carefully review and consider the various disclosures made by BankFinancial Corporation in its periodic reports filed with the Securities and Exchange Commission, including the risk factors and other information disclosed in BankFinancial Corporation’s Annual Report on Form 10-K for the most recently ended fiscal year. Copies of these filings are available at no cost on the SEC’s web site at http://www.sec.gov or on BankFinancial’s web site at http://www.bankfinancial.com.

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, Executive Vice President – Marketing & Sales BankFinancial Corporation Telephone: 630-242-7234

EX-99.2

Exhibit 99.2

BANKFINANCIAL CORPORATION

FIRST QUARTER 2007

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 with 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:

	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Return on assets (ratio of net income to average total assets) (1)		0.42	%		0.30	%		0.68	%		0.69	%		0.78	%
Return on equity (ratio of net income to average equity) (1)		2.03			1.48			3.34			3.43			3.82
Net interest rate spread (1)		2.98			2.91			2.86			2.84			2.92
Net interest margin (1)		3.84			3.74			3.71			3.62			3.65
Efficiency ratio		81.66			93.01			75.37			73.68			70.29
Noninterest expense to average total assets (1)		3.31			3.82			3.14			2.95			2.87
Average interest-earning assets to average interest-bearing liabilities		132.31			131.53			133.87			132.60			132.66
Offices		18			18			18			18			16
Employees (full time equivalents)		425			438			452			468			443
SUMMARY INCOME STATEMENT:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Total interest income	$	23,793		$	23,867		$	24,244		$	23,683		$	22,292
Total interest expense		9,765			9,854			9,792			9,363			8,480
Net interest income before provision		14,028			14,013			14,452			14,320			13,812
Provision (credit) for loan losses		581			(537	)		49			156			196
Net interest income		13,447			14,550			14,403			14,164			13,616
Noninterest income		2,042			2,533			2,658			2,587			2,731
Noninterest expense		13,122			15,390			12,895			12,457			11,628
Income before income tax		2,367			1,693			4,166			4,294			4,719
Income tax expense		716			486			1,371			1,390			1,579
Net income	$	1,651		$	1,207		$	2,795		$	2,904		$	3,140
Basic earnings per common share	$	0.08		$	0.06		$	0.12		$	0.13		$	0.14
Diluted earnings per common share	$	0.08		$	0.06		$	0.12		$	0.13		$	0.14
NONINTEREST INCOME AND EXPENSE:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Noninterest Income:
Deposit service charges and fees	$	835		$	1,022		$	1,142		$	1,117		$	917
Other fee income		461			507			466			482			461
Insurance commissions and annuities income		244			378			363			352			228
Gain on sales of loans		48			61			95			53			37
Gain (loss) on sales of investment securities		—			(43	)		89			55			—
Gain on disposition of premises and equipment		6			1			—			1			393
Loan servicing fee income		211			227			230			237			244
Amortization and impairment of servicing assets		(95	)		(121	)		(120	)		(146	)		(61	)
REO operations		—			1			(15	)		(26	)		(5	)
Other		332			500			408			462			517
Total noninterest income	$	2,042		$	2,533		$	2,658		$	2,587		$	2,731
Noninterest Expense:
Compensation and benefits	$	8,437		$	10,674		$	8,241		$	7,881		$	7,673
Office occupancy and equipment		1,507			1,416			1,530			1,340			1,316
Advertising		228			243			396			389			165
Data processing		749			855			873			825			788
Supplies, telephone and postage		568			560			583			450			507
Amortization of intangibles		477			489			496			495			393
Other		1,156			1,153			776			1,077			786
Total noninterest expenses	$	13,122		$	15,390		$	12,895		$	12,457		$	11,628

(1) Annualized

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

SUMMARY BALANCE SHEET:

	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
ASSETS:
Cash	$	35,357		$	38,286		$	34,515		$	31,475		$	31,059
Interest-bearing deposits and short-term investments		30,947			29,051			2,964			1,566			11,129
Securities available for sale, net		106,884			117,853			157,396			251,927			245,641
Loans held for sale		143			298			605			1,882			86
Loans receivable, net		1,298,319			1,329,915			1,312,114			1,280,365			1,261,820
Federal Home Loan Bank stock		15,598			15,598			18,911			18,911			25,434
Premises and equipment		34,571			35,005			35,069			35,206			32,182
Intangible assets		31,750			32,227			32,727			33,387			18,720
Other assets		13,382			14,889			15,676			16,911			17,050
Total assets	$	1,566,951		$	1,613,122		$	1,609,977		$	1,671,630		$	1,643,121
LIABILITIES AND EQUITY:
Deposits	$	1,105,846		$	1,129,585		$	1,106,249		$	1,137,664		$	1,053,411
Borrowings		134,300			138,148			165,082			175,349			236,251
Other liabilities		17,218			19,374			12,763			23,901			20,331
Total liabilities		1,257,364			1,287,107			1,284,094			1,336,914			1,309,993
Stockholders’ equity		309,587			326,015			325,883			334,716			333,128
Total liabilities and stockholders’ equity	$	1,566,951		$	1,613,122		$	1,609,977		$	1,671,630		$	1,643,121
CAPITAL RATIOS:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
BankFinancial Corporation:
Equity to total assets (end of period)		19.76	%		20.21	%		20.24	%		20.02	%		20.27	%
Tangible equity to tangible total assets (end of period)		18.10			18.58			18.59			18.39			19.36
BankFinancial FSB:
Risk-based total capital ratio		20.64			20.09			19.91			19.70			18.56
Risk-based tier 1 capital ratio		19.74			19.26			19.05			18.88			17.77
Tier 1 leverage ratio		15.51			15.05			14.95			14.33			13.83
Stock repurchases - $ (000’s)	$	19,261		$	3,960		$	13,330			—			—
Stock repurchases – shares		1,131,974			226,600			750,700			—			—
COMMON STOCK AND DIVIDENDS:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Stock Prices:
Close	$	16.27		$	17.81		$	17.49		$	17.30		$	15.92
High		17.98			18.50			18.11			17.30			16.41
Low		16.10			17.23			16.31			15.15			14.55
Cash dividends paid	$	0.07		$	0.06		$	0.06		$	0.06			—
DEPOSITS:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Non-interest-bearing demand	$	122,422		$	134,097		$	130,491		$	136,046		$	105,251
Interest-bearing NOW		277,683			274,391			251,938			244,173			224,732
Money market		258,400			260,796			250,767			249,133			244,916
Savings		114,793			114,851			118,898			129,482			121,016
Certificates of deposit - Retail		321,444			323,957			330,794			333,389			303,362
Certificates of deposit - Wholesale		11,104			21,493			23,361			45,441			54,134
Total certificates of deposit		332,548			345,450			354,155			378,830			357,496
Total deposits	$	1,105,846		$	1,129,585		$	1,106,249		$	1,137,664		$	1,053,411

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
LOANS:
One- to four-family residential real estate	$	391,759		$	397,545		$	409,288		$	402,097		$	408,206
Multi-family mortgage loans		299,566			297,131			292,100			291,005			289,364
Nonresidential real estate		314,275			320,729			307,619			303,901			282,496
Construction and land loans		68,742			85,222			83,526			78,900			85,761
Commercial loans		90,103			89,346			84,947			76,070			69,702
Commercial leases		134,327			139,164			135,019			127,971			128,062
Consumer loans		3,361			3,869			3,989			4,019			2,041
Other loans (including municipal)		4,752			4,959			4,959			4,959			5,159
Total loans		1,306,885			1,337,965			1,321,447			1,288,922			1,270,791
Loans in process		154			148			113			934			174
Net deferred loan origination costs		2,402			2,424			2,478			2,478			2,563
Allowance for loan losses		(11,122	)		(10,622	)		(11,924	)		(11,969	)		(11,708	)
Loans, net	$	1,298,319		$	1,329,915		$	1,312,114		$	1,280,365		$	1,261,820
CREDIT QUALITY RATIOS:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Nonperforming Loans and Assets:
Nonperforming loans	$	8,759		$	9,226		$	8,469		$	6,440		$	3,192
Real estate owned		—			—			—			30			56
Nonperforming assets	$	8,759		$	9,226		$	8,469		$	6,470		$	3,248
Asset Quality Ratios:
Nonperforming assets to total assets		0.56	%		0.57	%		0.53	%		0.39	%		0.20	%
Nonperforming loans to total loans		0.67			0.69			0.64			0.50			0.25
Allowance for loan losses to nonperforming loans		126.98			115.13			140.80			185.85			366.79
Allowance for loan losses to total loans		0.85			0.79			0.90			0.93			0.92
Net charge-off ratio (1)		0.02			0.23			0.03			0.03			0.00
ALLOWANCE FOR LOAN LOSSES:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Beginning balance	$	10,622		$	11,924		$	11,969		$	11,708		$	11,514
Allowance of acquired bank		—			—			—			212			—
Provision (credit) for loan losses		581			(537	)		49			156			196
Loans charged off		(97	)		(767	)		(96	)		(107	)		(2	)
Recoveries		16			2			2			—			—
Ending balance	$	11,122		$	10,622		$	11,924		$	11,969		$	11,708

(1) Annualized

Page 4

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

SELECTED AVERAGE BALANCES:

	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Average total assets	$	1,584,765		$	1,611,689		$	1,644,304		$	1,688,410		$	1,618,258
Average earning assets		1,481,465			1,486,033			1,544,356			1,588,219			1,533,951
Average total loans		1,323,345			1,328,482			1,320,016			1,288,063			1,260,870
Average investment securities		112,206			110,033			193,081			268,584			245,510
Average FHLB stock		15,598			18,299			18,911			24,717			25,434
Average other earning assets		30,316			29,219			12,348			6,855			2,137
Average interest-bearing deposits		981,956			980,771			982,859			1,006,818			932,918
Average total borrowings		137,715			149,001			170,804			190,935			223,359
Average interest-bearing liabilities		1,119,671			1,129,772			1,153,663			1,197,753			1,156,277
Average total stockholders’ equity		325,806			326,010			335,015			339,050			328,652
SELECTED YIELDS AND COST OF FUNDS (1):
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Average earning assets		6.51	%		6.37	%		6.23	%		5.98	%		5.89	%
Average total loans		6.66			6.52			6.50			6.38			6.30
Average investment securities		5.51			5.43			4.62			4.38			4.12
Average FHLB stock		3.72			3.21			3.99			3.15			3.06
Average other earning assets		5.15			5.28			5.75			5.03			4.18
Average interest-bearing deposits		3.42			3.33			3.22			2.97			2.73
Average total borrowings		4.38			4.29			4.19			4.01			4.01
Average interest-bearing liabilities		3.54			3.46			3.37			3.14			2.97
Interest rate spread		2.98			2.91			2.86			2.84			2.92
Net interest margin		3.84			3.74			3.71			3.62			3.65
EARNINGS PER SHARE COMPUTATIONS:
	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Net income	$	1,651		$	1,207		$	2,795		$	2,904		$	3,140
Average common shares outstanding		23,924,011			24,384,369			24,556,236			24,466,250			24,466,250
Less: Unearned ESOP shares		(1,802,198	)		(1,826,679	)		(1,851,346	)		(1,871,668	)		(1,896,134	)
Less: Unvested restricted stock		(637,882	)		(730,208	)		(210,082	)		—			—
Weighted average common shares outstanding		21,483,931			21,827,482			22,494,808			22,594,582			22,570,116
Plus: Dilutive common shares equivalents		53,611			12,994			12,294			—			—
Weighted average dilutive shares outstanding		21,537,542			21,840,476			22,507,102			22,594,582			22,570,116
Number of antidilutive stock options excluded from the diluted earnings per share calculation		1,301,000			1,301,000			1,140,000			N.A.			N.A.
Weighted average exercise price of anti-dilutive option shares	$	17.63		$	17.63		$	17.62			N.A.			N.A.
Earnings per basic share	$	0.08		$	0.06		$	0.12		$	0.13		$	0.14
Earnings per diluted share	$	0.08		$	0.06		$	0.12		$	0.13		$	0.14

N.A. = Not Applicable

(1) Annualized

Page 5

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

The Company utilizes a number of different financial measures, both GAAP and non-GAAP, in making operating, budgeting and planning decisions for future periods. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. The Company believes that the use of the non-GAAP financial measures described below provides the Board of Directors and management, and may provide some investors, with a more complete understanding the Company’s operating results and trends, and facilitate comparisons to historical and peer performance. The Company’s non-GAAP financial measures should be considered supplemental in nature and should not be considered in isolation, or as superior to or a substitute for, financial measures that are prepared in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may differ from similar non-GAAP financial measures that are used by other companies, thus limiting their usefulness as a comparative tool.

Amortization of Intangibles Expense. The Company believes that the exclusion from its net income of expense for the amortization of the core deposit intangible assets resulting from its acquisition of Success Bancshares and University National Bank facilitates the comparison of the Company’s operating results to the Company’s historical performance and to the performance of other financial institutions with different acquisition histories. In addition, the level of amortization of core deposit intangible assets arising from an acquisition can vary significantly depending on the valuation methodology used and the interest rate environment that existed at the time of the acquisition.

Equity-based Compensation. The Company believes that the exclusion of equity-based compensation expense from its net income facilitates the comparison of the Company’s operating results to the Company’s historical performance, including the prior periods in which it operated as a mutual institution and had no stock outstanding. In addition, the Company believes that this non-GAAP measure facilitates the comparison of the Company’s performance to the performance of other financial institutions that have different or more seasoned equity-based compensation plans, including plans pursuant to which stock option awards vested prior to the effective date of SFAS No. 123R.

Core Return on Assets. The Company believes that adjusting the calculation of its return on assets to exclude the equity-based compensation expense and the amortization of intangibles expense described above furthers the purposes described above. Thus, the Company calculates core return on assets by dividing net income for a period, adjusted to exclude these expenses, by its average assets for the period.

Core Return on Equity. The Company believes that adjusting the calculation of its return on equity to exclude the equity-based compensation expense and the amortization of intangibles expenses described above furthers the purposes described above. Thus, the Company calculates core return on equity by dividing average stockholders’ equity for a period by net income, adjusted to exclude these expenses, for the period.

Core Dilutive Earnings per Share. The Company believes that adjusting the calculation of its dilutive earnings per share to exclude the equity-based compensation expense and the amortization of intangibles expenses described above furthers the purposes described above. Thus, the Company calculates core dilutive earnings per share by net income, adjusted to exclude these expenses, for the period by the weighted average dilutive common shares outstanding, for the period.

Core Noninterest Expense to Average Total Assets. The Company believes that adjusting the calculation of its noninterest expense to average total assets to exclude the equity-based compensation expense and the amortization of intangibles expenses described above furthers the purposes described above. Thus, the Company calculates noninterest expense to average total assets by dividing noninterest expense, adjusted to exclude these expenses, by average total assets for the period.

Core Efficiency Ratio. The Company believes that adjusting the calculation of its efficiency ratio to exclude the equity-based compensation expense and the amortization of intangibles expense described above furthers the purposes described above. Thus, the Company calculates core efficiency ratio by dividing noninterest expense, adjusted to exclude these expenses, by the sum of net interest income and noninterest income.

There are inherent limitations associated with the use of each of the above non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and reflect the exclusion of items that are recurring and will be reflected in the Company’s financial results in the future. The Company has further highlighted these and the other limitations described above by providing a reconciliation of the GAAP amounts that have been excluded from these non-GAAP financial measures.

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BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE QUARTERS ENDED MARCH 31, 2007 AND 2006

	Three months ended March 31,
	2007			2006
Core Operating Income:
Net Income	$	1,651		$	3,140
Adjustments:
Equity-based compensation and benefits		1,261			384
Amortization of core deposit intangible		476			393
Tax effect on adjustments assuming 39.745% tax rate		(690	)		(309	)
Core Operating Income	$	2,698		$	3,608
Return on assets (ratio of net income to average total assets) (1)		0.42	%		0.78	%
Core return on assets (ratio of core operating income to average total assets) (1)		0.68	%		0.89	%
Return on equity (ratio of net income to average equity) (1)		2.03	%		3.82	%
Core return on equity (ratio of core operating income to average equity) (1)		3.31	%		4.39	%
Dilutive earnings per common share	$	0.08		$	0.14
Core dilutive earnings per common share	$	0.13		$	0.16
Core Noninterest Expenses:
Noninterest Expenses	$	13,122		$	11,628
Adjustments:
Equity-based compensation and benefits		(1,261	)		(384	)
Amortization of core deposit intangible		(476	)		(393	)
Core Noninterest Expenses	$	11,385		$	10,851
Noninterest expense to average total assets (1)		3.31	%		2.87	%
Core noninterest expense to average total assets (1)		2.87	%		2.68	%
Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income)		81.66	%		70.29	%
Core efficiency ratio (ratio of core noninterest expense to net interest income plus noninterest income)		70.85	%		65.59	%

(1) Annualized

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FOR THE LATEST FIVE QUARTERS

	2007			2006
	IQ			IVQ			IIIQ			IIQ			IQ
Core Operating Income:
Net Income	$	1,651		$	1,207		$	2,795		$	2,904		$	3,140
Adjustments:
Equity-based compensation and benefits		1,261			3,542			996			455			384
Amortization of core deposit intangible		476			489			496			495			393
Tax effect on adjustments assuming 39.745% tax rate		(690	)		(1,602	)		(593	)		(378	)		(309	)
Core Operating Income	$	2,698		$	3,636		$	3,694		$	3,476		$	3,608
Return on assets (ratio of net income to average total assets) (1)		0.42	%		0.30	%		0.68	%		0.69	%		0.78	%
Core return on assets (ratio of core operating income to average total assets)(1)		0.68	%		0.90	%		0.90	%		0.82	%		0.89	%
Return on equity (ratio of net income to average equity) (1)		2.03	%		1.48	%		3.34	%		3.43	%		3.82	%
Core return on equity (ratio of core operating income to average equity) (1)		3.31	%		4.46	%		4.41	%		4.10	%		4.39	%
Dilutive earnings per common share	$	0.08		$	0.06		$	0.12		$	0.13		$	0.14
Core dilutive earnings per common share	$	0.13		$	0.17		$	0.16		$	0.15		$	0.16
Core Operating Expenses:
Noninterest Expenses	$	13,122		$	15,390		$	12,895		$	12,457		$	11,628
Adjustments:
Equity-based compensation and benefits		(1,261	)		(3,542	)		(996	)		(455	)		(384	)
Amortization of core deposit intangible		(476	)		(489	)		(496	)		(495	)		(393	)
Core Noninterest Expenses	$	11,385		$	11,359		$	11,403		$	11,507		$	10,851
Noninterest expense to average total assets (1)		3.31	%		3.82	%		3.14	%		2.95	%		2.87	%
Core noninterest expense to average total assets (1)		2.87	%		2.82	%		2.77	%		2.73	%		2.68	%
Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income)		81.66	%		93.01	%		75.37	%		73.68	%		70.29	%
Core efficiency ratio (ratio of core noninterest expense to net interest income plus noninterest income)		70.85	%		68.65	%		66.65	%		68.06	%		65.59	%

(1) Annualized

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