-----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, UnxQlqzY+03sI7LH43o8goHMEhuasq6igG9D3ZrhAQ8vrlxSxnc/fLbCoMrMifBt +VyRWl1FnL37EVppfEPGwA== 0001193125-10-241991.txt : 20101101 0001193125-10-241991.hdr.sgml : 20101101 20101101084835 ACCESSION NUMBER: 0001193125-10-241991 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20101101 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20101101 DATE AS OF CHANGE: 20101101 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: 1206 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51331 FILM NUMBER: 101153509 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 d8k.htm FORM 8-K 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): November 1, 2010

 

 

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 November 1, 2010, BankFinancial Corporation (the “Company”) issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 and a Quarterly Financial and Statistical Supplement. The press release also reported earnings for the three and nine months ended September 30, 2010.

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 November 1, 2010
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
Dated: November 1, 2010   By:  

/s/ F. Morgan Gasior

    F. Morgan Gasior
   

Chairman of the Board and

Chief Executive Officer

 

EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1   Press Release dated November 1, 2010
99.2   Quarterly Financial and Statistical Supplement
 EX-99.1 2 dex991.htm PRESS RELEASE Press Release

 

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

BankFinancial Corporation Reports Financial Results for the Third Quarter 2010

Burr Ridge, Illinois - (November 1, 2010) BankFinancial Corporation (Nasdaq – BFIN) (“BankFinancial”) announced that it filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 and a Quarterly Financial and Statistical Supplement on Form 8-K with the U.S. Securities and Exchange Commission (the “SEC”) today.

BankFinancial reported net income of $737,000, or $0.04 per common share, for the three months ended September 30, 2010 compared to $1.4 million, or $0.07 per common share, for the three months ended September 30, 2009. Net income for the nine months ended September 30, 2010 was $1.2 million, or $0.06 per common share, compared to $858,000, or $0.04 per common share for the nine months ended September 30, 2009.

At September 30, 2010, BankFinancial had total assets of $1.570 billion, total loans of $1.099 billion, total deposits of $1.261 billion and stockholders’ equity of $260 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. The Quarterly Financial and Statistical Supplement includes comparative GAAP and non-GAAP performance data and financial measures for the most recent five quarters.

BankFinancial’s management will review third quarter 2010 results in a conference call and webcast for stockholders and analysts on Tuesday, November 2, 2010 at 9:30 a.m. Chicago Time. The conference call may be accessed by calling (888) 396-2386 and using participant passcode 75534673. 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. Chicago Time November 16, 2010 on our website.

BankFinancial Corporation is the holding company for BankFinancial, F.S.B., a full-service, community-oriented 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’s common stock trades on the Nasdaq Global Select Market under the symbol BFIN.

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. 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 – Controller

BankFinancial Corporation

Telephone: 630-242-7151

   

Gregg T. Adams

Executive Vice President – Marketing & Sales

BankFinancial F.S.B.

Telephone: 630-242-7234

 EX-99.2 3 dex992.htm QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT Quarterly Financial and Statistical Supplement

 

Exhibit 99.2

BANKFINANCIAL CORPORATION

THIRD QUARTER 2010

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)

 

     2010     2009  
PERFORMANCE MEASUREMENTS:    IIIQ     IIQ     IQ     IVQ     IIIQ  

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

      0.19 %      (0.07 )%      0.18 %      (0.41 )%      0.35 % 

Return on equity (ratio of net income (loss) to average equity) (1)

      1.13        (0.44 )      1.08        (2.40 )      2.02   

Net interest rate spread (1)

      3.25        3.30        3.48        3.38        3.43   

Net interest margin (1)

      3.45        3.53        3.73        3.67        3.74   

Efficiency ratio

      89.65        84.81        86.42        89.95        82.06   

Noninterest expense to average total assets (1)

      3.35        3.14        3.25        3.57        3.21   

Average interest-earning assets to average interest-bearing liabilities

      122.26        122.10        122.57        123.82        123.70   

Number of full service offices

      18        18        18        18        18   

Employees (full time equivalents)

      327        338        352        372        374   
     2010     2009  
SUMMARY STATEMENT OF OPERATIONS:    IIIQ     IIQ     IQ     IVQ     IIIQ  

Total interest income

    $ 15,892      $ 16,451      $ 17,145      $ 17,980      $ 18,510   

Total interest expense

      3,138        3,677        3,929        4,483        4,838   
                                        

Net interest income before provision

      12,754        12,774        13,216        13,497        13,672   

Provision for loan losses

      419        2,665        851        4,193        427   
                                        

Net interest income

      12,335        10,109        12,365        9,304        13,245   

Noninterest income

      1,958        1,812        1,455        2,135        1,660   

Noninterest expense

      13,190        12,370        12,678        14,061        12,581   
                                        

Income (loss) before income tax

      1,103        (449 )      1,142        (2,622 )      2,324   

Income tax expense (benefit)

      366        (161 )      426        (1,026 )      973   
                                        

Net income (loss)

    $ 737      $ (288 )    $ 716      $ (1,596 )    $ 1,351   
                                        

Basic earnings (loss) per common share

    $ 0.04      $ (0.01 )    $ 0.04      $ (0.08 )    $ 0.07   
                                        

Diluted earnings (loss) per common share

    $ 0.04      $ (0.01 )    $ 0.04      $ (0.08 )    $ 0.07   
                                        
     2010     2009  
NONINTEREST INCOME AND EXPENSE:    IIIQ     IIQ     IQ     IVQ     IIIQ  

Noninterest Income:

           

Deposit service charges and fees

    $ 776      $ 792      $ 773      $ 869      $ 904   

Other fee income

      482        500        434        450        442   

Insurance commissions and annuities income

      234        179        135        234        193   

Gain on sales of loans, net

      202        68        47        175        88   

Gain (loss) on sales of securities

      —          31        —          (988 )      —     

Loss on disposition of premises and equipment

      (2 )      (17 )      —          (35 )      (1 ) 

Loan servicing fees

      143        154        170        162        155   

Amortization and impairment of servicing assets

      (90 )      (78 )      (243 )      (17 )      (182 ) 

Earnings on bank owned life insurance

      115        92        79        60        12   

Other

      98        91        60        1,225        49   
                                        

Total noninterest income

    $ 1,958      $ 1,812      $ 1,455      $ 2,135      $ 1,660   
                                        

Noninterest Expense:

           

Compensation and benefits

    $ 6,583      $ 6,552      $ 7,211      $ 7,285      $ 6,948   

Office occupancy and equipment

      1,723        1,609        1,801        1,845        1,567   

Advertising and public relations

      321        303        216        399        239   

Information technology

      893        961        921        915        848   

Supplies, telephone, and postage

      391        406        361        453        483   

Amortization of intangibles

      399        399        405        417        422   

Loss on impairment of securities

      —          —          —          —          401   

Nonperforming asset management

      821        355        268        471        127   

Operations of real estate owned

      554        500        134        788        149   

FDIC insurance premiums

      520        532        555        461        499   

Other

      985        753        806        1,027        898   
                                        

Total noninterest expenses

    $ 13,190      $ 12,370      $ 12,678      $ 14,061      $ 12,581   
                                        

 

(1) Annualized

 

Page 1

 

BANKFNANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands) – (Unaudited)

 

     2010      2009  
     IIIQ      IIQ      IQ      IVQ      IIIQ  

SUMMARY STATEMENT OF FINANCIAL CONDITION

               

ASSETS:

               

Cash and due from other financial institutions

    $ 12,855       $ 13,618       $ 13,934       $ 20,355       $ 16,617   

Interest-bearing deposits in other financial institutions

      248,857         205,666         161,897         87,843         85,281   

Securities, at fair value

      78,272         84,688         94,447         102,126         109,213   

Loans held-for-sale

      3,051         212         —           —           1,812   

Loans receivable, net

      1,098,505         1,123,949         1,152,385         1,218,540         1,233,199   

Real estate owned and real estate owned in process

      11,158         8,929         6,882         4,084         1,756   

Stock in Federal Home Loan Bank, at cost

      15,598         15,598         15,598         15,598         15,598   

Premises and equipment, net

      32,934         33,575         34,305         34,614         34,771   

Intangible assets

      25,658         26,057         26,456         26,861         27,278   

Bank owned life insurance

      20,437         20,322         20,230         20,151         20,091   

FDIC prepaid expense

      5,315         5,785         6,268         6,777         —     

Income tax receivable

      515         9,057         9,108         11,729         486   

Other assets

      17,265         18,183         17,144         18,285         28,477   
                                            

Total assets

    $ 1,570,420       $ 1,565,639       $ 1,558,654       $ 1,566,963       $ 1,574,579   
                                            

LIABILITIES AND STOCKHOLDERS’ EQUITY:

               

Deposits

    $ 1,260,694       $ 1,253,259       $ 1,231,971       $ 1,233,395       $ 1,211,838   

Borrowings

      29,275         35,566         48,092         50,784         74,648   

Other liabilities

      20,906         17,417         14,882         19,181         21,799   
                                            

Total liabilities

      1,310,875         1,306,242         1,294,945         1,303,360         1,308,285   

Stockholders’ equity

      259,545         259,397         263,709         263,603         266,294   
                                            

Total liabilities and stockholders’ equity

    $ 1,570,420       $ 1,565,639       $ 1,558,654       $ 1,566,963       $ 1,574,579   
                                            
     2010      2009  
DEPOSITS:    IIIQ      IIQ      IQ      IVQ      IIIQ  

Non-interest-bearing demand

    $ 99,648       $ 103,602       $ 101,284       $ 108,308       $ 110,697   

Savings deposits

      97,757         97,907         99,107         96,107         96,372   

Money market accounts

      357,557         357,078         336,089         322,126         296,824   

Interest-bearing NOW accounts

      296,537         294,157         290,929         303,219         290,607   

Certificates of deposit - Retail

      405,999         390,635         390,587         388,871         402,305   

Certificates of deposit - Wholesale

      3,196         9,880         13,975         14,764         15,033   
                                            

Total certificates of deposit

      409,195         400,515         404,562         403,635         417,338   
                                            

Total deposits

    $ 1,260,694       $ 1,253,259       $ 1,231,971       $ 1,233,395       $ 1,211,838   
                                            

 

Page 2

 

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands) – (Unaudited)

 

     2010     2009  
LOANS:    IIIQ     IIQ     IQ     IVQ     IIIQ  

One-to-four family residential real estate loans

    $ 267,800      $ 276,440      $ 283,556      $ 289,623      $ 293,927   

Multi-family mortgage loans

      306,509        305,519        308,268        329,227        329,934   

Nonresidential real estate loans

      293,197        306,993        307,816        316,607        324,428   

Construction and land loans

      17,583        18,477        26,186        32,577        39,042   

Commercial loans

      74,621        72,716        70,420        88,067        74,567   

Commercial leases

      154,254        158,990        169,633        176,821        183,841   

Consumer loans

      2,484        2,263        2,394        2,539        2,565   
                                        

Total loans

      1,116,448        1,141,398        1,168,273        1,235,461        1,248,304   

Net deferred loan origination costs

      1,474        1,520        1,628        1,701        1,818   

Allowance for loan losses

      (19,417 )      (18,969 )      (17,516 )      (18,622 )      (16,923 ) 
                                        

Loans, net

    $ 1,098,505      $ 1,123,949      $ 1,152,385      $ 1,218,540      $ 1,233,199   
                                        
     2010     2009  
CREDIT QUALITY RATIOS:    IIIQ     IIQ     IQ     IVQ     IIIQ  

Nonperforming Assets:

           

Nonaccrual loans:

           

One-to-four family residential real estate loans

    $ 9,180      $ 10,788      $ 9,064      $ 11,453      $ 9,248   

Multi-family mortgage loans

      18,287        16,405        13,033        13,961        8,196   

Nonresidential real estate loans

      9,858        9,511        10,810        11,074        9,172   

Construction and land loans

      6,139        6,948        6,948        8,841        11,082   

Commercial loans

      4,715        4,508        4,110        4,160        2,340   

Commercial leases

      72        —          —          —          —     

Consumer loans

      3        3        —          —          —     
                                        

Nonaccrual loans

      48,254        48,163        43,965        49,489        40,038   

Real estate owned:

           

One-to-four family residential real estate

      2,571        1,462        1,254        601        816   

Multi-family real estate

      1,418        2,649        1,958        976        45   

Nonresidential real estate

      1,590        1,815        2,056        1,416        600   

Construction projects and land

      1,405        1,583        1,614        1,091        295   
                                        

Real estate owned

      6,984        7,509        6,882        4,084        1,756   
                                        

Real estate owned in process:

           

One-to-four family residential real estate

      1,105        117        —          —          —     

Multi-family real estate

      615        —          —          —          —     

Nonresidential real estate

      1,573        1,303        —          —          —     

Construction projects and land

      881        —          —          —          —     
                                        

Real estate owned in process

      4,174        1,420        —          —          —     
                                        

Nonperforming assets

    $ 59,412      $ 57,092      $ 50,847      $ 53,573      $ 41,794   
                                        

Asset Quality Ratios:

           

Nonperforming assets to total assets

      3.78 %      3.65 %      3.26 %      3.42 %      2.65 % 

Nonaccrual loans to total loans

      4.32        4.22        3.76        4.01        3.21   

Allowance for loan losses to nonaccrual loans

      40.24        39.39        39.84        37.63        42.27   

Allowance for loan losses to total loans

      1.74        1.66        1.50        1.51        1.36   

Net charge-off ratio (1)

      (0.01 )      0.42        0.66        0.80        0.20   

 

(1) Annualized

 

Page 3

 

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands) – (Unaudited)

 

     2010     2009  
ALLOWANCE FOR LOAN LOSSES:    IIIQ     IIQ     IQ     IVQ     IIIQ  

Beginning balance

    $ 18,969      $ 17,516      $ 18,622      $ 16,923      $ 17,138   

Provision for loan losses

      419        2,665        851        4,193        427   

Loans charged off

      (570 )      (1,241 )      (1,974 )      (2,573 )      (660 ) 

Recoveries

      599        29        17        79        18   
                                        

Ending balance

    $ 19,417      $ 18,969      $ 17,516      $ 18,622      $ 16,923   
                                        
     2010     2009  
SELECTED AVERAGE BALANCES:    IIIQ     IIQ     IQ     IVQ     IIIQ  

Total average assets

    $ 1,576,186      $ 1,574,013      $ 1,559,221      $ 1,573,800      $ 1,566,311   

Total average interest-earning assets

      1,468,442        1,452,835        1,437,236        1,458,026        1,452,238   

Average loans

      1,116,574        1,153,960        1,194,313        1,245,601        1,267,332   

Average securities

      78,751        88,017        96,778        103,141        108,759   

Average stock in FHLB

      15,598        15,598        15,598        15,598        15,598   

Average other interest-earning assets

      257,519        195,260        130,547        93,686        60,549   

Total average interest-bearing liabilities

      1,201,045        1,189,847        1,172,612        1,177,492        1,173,970   

Average interest-bearing deposits

      1,170,022        1,146,869        1,122,434        1,109,892        1,097,285   

Average borrowings

      31,023        42,978        50,178        67,600        76,685   

Average stockholders’ equity

      260,073        264,043        264,739        266,542        267,166   
     2010     2009  
SELECTED YIELDS AND COST OF FUNDS (1):    IIIQ     IIQ     IQ     IVQ     IIIQ  

Total average interest-earning assets

      4.29 %      4.54 %      4.84 %      4.89 %      5.06 % 

Average loans

      5.30        5.36        5.45        5.36        5.43   

Average securities

      4.08        4.15        4.22        4.22        4.15   

Average other interest-earning assets

      0.25        0.25        0.25        0.25        0.24   

Total average interest-bearing liabilities

      1.04        1.24        1.36        1.51        1.63   

Average interest-bearing deposits

      1.00        1.20        1.31        1.46        1.58   

Average borrowings

      2.29        2.27        2.42        2.41        2.46   

Net interest rate spread

      3.25        3.30        3.48        3.38        3.43   

Net interest margin

      3.45        3.53        3.73        3.67        3.74   

 

(1) Annualized

 

Page 4

 

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

     2010     2009  
CAPITAL RATIOS:    IIIQ     IIQ     IQ     IVQ     IIIQ  

BankFinancial Corporation:

           

Equity to total assets (end of period)

      16.53 %      16.57 %      16.92 %      16.82 %      16.91 % 

Tangible equity to tangible total assets (end of period)

      15.01        15.15        15.40        15.26        15.56   

Risk-based total capital ratio

      21.71        21.44        21.10        20.06        19.55   

Risk-based tier 1 capital ratio

      20.54        20.31        20.00        18.97        18.57   

Tier 1 leverage ratio

      15.01        15.16        15.41        15.27        15.17   

BankFinancial FSB:

           

Risk-based total capital ratio

      18.56        18.06        17.41        16.40        15.98   

Risk-based tier 1 capital ratio

      17.39        16.94        16.32        15.31        15.00   

Tier 1 leverage ratio

      12.70        12.74        12.67        12.44        12.25   
     2010     2009  
COMMON STOCK AND DIVIDENDS:    IIIQ     IIQ     IQ     IVQ     IIIQ  

Stock Prices:

           

Close

    $ 9.17      $ 8.31      $ 9.17      $ 9.90      $ 9.60   

High

      9.38        9.99        10.16        10.40        11.04   

Low

      8.12        8.28        9.01        9.07        8.75   

Book value per share

    $ 12.32      $ 12.32      $ 12.31      $ 12.31      $ 12.43   

Tangible book value per share

    $ 11.11      $ 11.08      $ 11.08      $ 11.05      $ 11.16   

Cash dividends declared and paid on common stock

    $ 0.07      $ 0.07      $ 0.07      $ 0.07      $ 0.07   

Stock repurchases

    $ —        $ 3,124      $ —        $ —        $ —     

Stock repurchases – shares

      —          356,411        —          —          —     
     2010     2009  
EARNINGS PER SHARE COMPUTATIONS:    IIIQ     IIQ     IQ     IVQ     IIIQ  

Net income (loss)

    $ 737      $ (288 )    $ 716      $ (1,596 )    $ 1,351   
                                        

Average common shares outstanding

      21,059,966        21,301,212        21,416,377        21,416,377        21,416,377   

Less: Unearned ESOP shares

      (1,423,724 )      (1,457,047 )      (1,488,018 )      (1,512,499 )      (1,549,780 ) 

Unvested restricted stock shares

      (106,850 )      (106,850 )      (108,650 )      (197,672 )      (217,850 ) 
                                        

Weighted average common shares outstanding

      19,529,392        19,737,315        19,819,709        19,706,206        19,648,747   

Plus: Dilutive common shares equivalents

      57,542        —          —          —          —     
                                        

Weighted average dilutive common shares outstanding

      19,586,934        19,737,315        19,819,709        19,706,206        19,648,747   
                                        

Number of anti-dilutive stock options excluded from the diluted earnings per share calculation

      2,298,603        2,320,803        2,322,603        2,322,603        2,322,603   

Weighted average exercise price of anti-dilutive options

    $ 16.51      $ 16.51      $ 16.51      $ 16.51      $ 16.51   

Basic earnings (loss) per common share

    $ 0.04      $ (0.01 )    $ 0.04      $ (0.08 )    $ 0.07   
                                        

Diluted earnings (loss) per common share

    $ 0.04      $ (0.01 )    $ 0.04      $ (0.08 )    $ 0.07   
                                        

 

Page 5

 

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

BankFinancial Corporation, a Maryland corporation (“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, 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 of 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.

These measures include core return on assets, core return on equity, core dilutive earnings (loss) per share, core operating expense to average total assets, and core efficiency ratio. Management also believes that by excluding equity-based compensation expense, amortization of intangibles expenses, loss on sale of our Freddie Mac preferred stocks, loss on impairment of securities, gain on sale of merchant processing operations, and the FDIC special assessment from other noninterest income and expense, these ratios and earnings (loss) per share better reflect our core operating performance.

 

Page 6

 

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE QUARTERS AND NINE MONTH PERIODS

ENDED SEPTEMBER 30, 2010 AND 2009

 

     Three months ended
September 30,		     Nine months ended
September 30,		  
     2010     2009     2010     2009  

Core operating income:

         

Net income

    $ 737      $ 1,351      $ 1,165      $ 858   

Adjustments:

         

Equity-based compensation

      688        690        1,916        2,355   

Amortization of intangibles

      399        422        1,203        1,273   

Loss on impairment of securities

      —          401        —          401   

FDIC special assessment

      —          —          —          700   

Tax effect on adjustments assuming 39.745% tax rate

      (432 )      (601 )      (1,240 )      (1,880 ) 
                                

Core operating income

    $ 1,392      $ 2,263      $ 3,044      $ 3,707   
                                

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

      0.19 %      0.35 %      0.10        0.07 % 

Core return on assets (ratio of core operating income to average total assets) (1)

      0.35 %      0.58 %      0.26 %      0.32 % 

Return on equity (ratio of net income to average equity) (1)

      1.13 %      2.02 %      0.59 %      0.43 % 

Core return on equity (ratio of core operating income to average equity)(1)

      2.14 %      3.39 %      1.54 %      1.85 % 

Diluted earnings per common share

    $ 0.04      $ 0.07      $ 0.06      $ 0.04   

Core dilutive earnings per common share

    $ 0.07      $ 0.12      $ 0.15      $ 0.19   

Core operating expenses:

         

Noninterest expenses

    $ 13,190      $ 12,581      $ 38,238      $ 38,670   

Adjustments:

         

Equity-based compensation

      (688 )      (690 )      (1,916 )      (2,355 ) 

Amortization of intangibles

      (399 )      (422 )      (1,203 )      (1,273 ) 

Loss on impairment of securities

      —          (401 )      —          (401 ) 

FDIC special assessment

      —          —          —          (700 ) 
                                

Core operating expenses

    $ 12,103      $ 11,068      $ 35,119      $ 33,941   
                                

Noninterest expense to average total assets (1)

      3.35 %      3.21 %      3.26 %      3.29 % 

Core operating expense to average total assets (1)

      3.07 %      2.83 %      3.00 %      2.89 % 

Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income)

      89.65 %      82.06 %      86.97 %      85.63 % 

Core efficiency ratio (ratio of core operating expense to net interest income plus core noninterest income)

      82.27 %      72.19 %      79.87 %      75.16 % 

 

(1) Annualized for the three-month periods.

 

Page 7

 

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

 

     2010     2009  
FOR THE LATEST FIVE QUARTERS    IIIQ     IIQ     IQ     IVQ     IIIQ  

Core operating income (loss)

           

Net income (loss)

    $ 737      $ (288 )    $ 716      $ (1,596 )    $ 1,351   

Adjustments:

           

Equity-based compensation

      688        595        632        681        690   

Amortization of intangibles

      399        399        405        417        422   

Loss on sales of Freddie Mac preferred stocks

      —          —          —          988        —     

Loss on impairment of securities

      —          —          —          —          401   

Gain on sale of merchant processing operations

      —          —          —          (1,300 )      —     

Tax effect on adjustments assuming 39.745% tax rate

      (432 )      (395 )      (412 )      (312 )      (601 ) 
                                        

Core operating income (loss)

    $ 1,392      $ 311      $ 1,341      $ (1,122 )    $ 2,263   
                                        

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

      0.19 %      (0.07 )%      0.18 %      (0.41 )%      0.35 % 

Core return on assets (ratio of core operating income (loss) to average total assets) (1)

      0.35 %      0.08 %      0.34 %      (0.29 )%      0.58 % 

Return on equity (ratio of net income (loss) to average equity)(1)

      1.13 %      (0.44 )%      1.08 %      (2.40 )%      2.02 % 

Core return on equity (ratio of core operating income (loss) to average equity) (1)

      2.14 %      0.47 %      2.03 %      (1.68 )%      3.39 % 

Diluted earnings (loss) per common share

    $ 0.04      $ (0.01 )    $ 0.04      $ (0.08 )    $ 0.07   

Core diluted earnings (loss) per common share

    $ 0.07      $ 0.02      $ 0.07      $ (0.06 )    $ 0.12   

Core operating expense:

           

Noninterest expense

    $ 13,190      $ 12,370      $ 12,678      $ 14,061      $ 12,581   

Adjustments:

           

Equity-based compensation

      (688 )      (595 )      (632 )      (681 )      (690 ) 

Amortization of intangibles

      (399 )      (399 )      (405 )      (417 )      (422 ) 

Loss on impairment of securities

      —          —          —          —          (401 ) 
                                        

Core operating expense

    $ 12,103      $ 11,376      $ 11,641      $ 12,963      $ 11,068   
                                        

Noninterest expense to average total assets (1)

      3.35 %      3.14 %      3.25 %      3.57 %      3.21 % 

Core operating expense to average total assets (1)

      3.07 %      2.89 %      2.99 %      3.30 %      2.83 % 

Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income)

      89.65 %      84.81 %      86.42 %      89.95 %      82.06 % 

Core efficiency ratio (ratio of core operating expense to net interest income plus core noninterest income)

      82.27 %      77.99 %      79.35 %      82.93 %      72.19 % 

 

(1) Annualized for the three-month periods.

 

Page 8

GRAPHIC 4 g112483ex99_1.jpg GRAPHIC begin 644 g112483ex99_1.jpg M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````9```_^X`#D%D M;V)E`&3``````?_;`(0``0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$! M`0$!`0$!`0$!`0$!`0("`@("`@("`@("`P,#`P,#`P,#`P$!`0$!`0$"`0$" M`@(!`@(#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,# M`P,#`P,#`P,#_\``$0@`00#$`P$1``(1`0,1`?_$`'D``0`"`@(#`0`````` M```````'"`D*!08#!`L"`0$`````````````````````$```!@("`@`$!`4" M!`<````"`P0%!@PT7I-/'G.>M+4\@9_C34E$Q+#"$\@1@**(5F*C!@4YR5@!`\X#VZU[>]\ M:TVOUCUO[).LG.IL:VXG2VJ:DN&!;%0.]8YBS/I)[FQQQ^10PMT.RD2UZAL#5R M59&,C6R9(J,^H)5:-J=C%2P*[Y5,40((`#&IQG(\8QP,O0/?T!\3U^)ZA]_3 MSZ>_C'MZ>W\WK[?P\_CXX&C'O=]V=L7K5OGL)IY2.G577&@J&XG>G(LZ'26P MU$SF<@CYR=E=4I4?CB([![D*4EJDI)"4LP0\%AQCV%GSD(L_=;=L'_X]J_\` MTELE^D^!G9LWO<!IT=P/W/UF==V^DITLI/6&O; MK,A49KC#Y)99-I*R.)T^G[,GDP(\VM[(WG)#$2%F?6P'L(WXF58S@9]F/:_8" M0N4$<1%DLK1!*MU_UC>$KW'EJ@E*4G);!I5"]8I\B\"--%Y#6V6;D7%$NN_L MFUZU/LC:11&-B.U*JM)]!X-;4XGRN^80B2#62B?Q!K72AV(F4%<'8*".MYJ( M\Q,H2G.>"5>,*3#_`XNKHIJF,Z03;83=#=G>Y]V-IW5AUGT^M-AVAE+=# MJY?ZMJ@]Z<&JN(26F^A%PF-JV'X1!)N!JG()/QA&@/4"%@-?^F^S,APLGI(L MOM1L^4*(II)J=>&X1KRZM3U,9;_2RJ7>KJDG<^U=T(AMDR!)1E+US M#XVMF<8LFWD,:DYS99-Q2D!)RDX*P(TR(@Q/DPG!Y*=,W!\X[0V4;WVAV"M^ MRNG-/.6Q>VT-F4PV:_+1,/5V(E*<5CX(#W,7QA$Y(E*EM:9%-D^2SAJ@"*6' M)\X%D?KY#>"TG[+/N*,[",#[V.:I--#Z3P*&6[9VP%FK-?5\.PRQ&LZEFTY2 M($DC63YP+;'&1R)A1-R<6$R@0CE00^GC.1!#60ZL^P_:!VW.V,V^M39.\Y%! M]9M>-KMNR:]E=OV.\UNNG@FE5$::B[K"5,K`TN4=S;UI,1(&[`0E9+`$`?7& M,9P'ATSV1[]>Y'=-P1AG,8 M86L,*DY:)*LCS*=*AFF_'3C&<68>`(?HV2]F^GG_9:0O3`-"C.,`>22<`8`!M@]N]? MIYIO18LMW7[]6;0+7Y&W-48J;4G6>S[.>+.,B3`SHE"N361$6)X9&J,3V5O; MJI//R)F=<#1F)2@*!@(#C@:A-T;73&@M[(LV]8/9+NU>\&12"OT<6M6PY18$ M0>)9/75V(3O+""(KW@`97#C5AY*7PYM:<#E\0XH:8U/Z'*`O3W)]RG8QN+OW M;>H>OE]60RTVPW*FU\JNGJ"6JX3FS9@RN":OW`YY=(V)!+9NJG,_PJ$0A7+C MFXDHP@LHC&09-&%<>W.B>YK0>943-=[MN9F_3F\XFM?H877FR$S>5$#S!L,S M8X0]:R-`8JPQ57'27-&$'T`I2R#^)G!"HP83,8"_FS_W$.\]'=:&@FIM6WB[ ME[(3W6MYFVR^PSD>Y/\`=31&Y?9LS+HV.QZY)/8;,ELNN7^019'9&;*K5U=BREL52MZ]XP86I0DJ!(B,'@)*/]/4. MVU#*6+LR^Z$ATW`G2R>!61V"9FC4E$(+FU/]64,YJI,SX,"JQDM2S/,$JPHP MTO.,8$0<+&,8\^.!]:G@.!3;L.GEKUGHWM5-*)AF90Q1@+8U-&!.2LU"[.92D>"<9&`HD0O^W@:S/3CNO+NMW06GM3WGJ0[ M<)G<;+*ETKG824HB6M8[.*LX[($2 M8*UISUV<&"/S MYY5IOE_ZCM;+2$6]4RSU7!^JAR'.,&9\!LQ_<2LM]3?J?V&J76ZM9_:=GW6Y M5I5J:-UNRNC[("HX^S]A<):X'I6C`E)+'F/LQZ5::/&2?@*L@,_E'G.`Q:]= M/6'_`%^VV[+6[:O7"31?4]KU(UIZWJ28+&ABN-8FT)JV!,\=EMF5JH=&\.49 MZ:85X%[;W9#D!J5[ZG;U2?$P0)LJ4DDJ2K'ISP24((0MX:+'P\!#ZY_$>,9#Y_%/]4&]M9]3^XCR;IGL M4HV!V1V1UTH!CKL-1R@4W:*,K9'*;ZGDZPUA;@NA,1?;&C\7;#3\AR08L1$@ MQC.<9S@-I+[3#1FVM)M1]O+FV#H:QJPN2R;-2-J*)S**.+'.'FLZB@_U5A(: M&%S2IW+.'>73%Y+*\8]59I9>,>?3&>!K::#=9_;AL+V56;M=--<+II2Y#6;: MC9J'V#9\+>('%R]BWV'3==4K,U2*9(\-33)-*X M0G3D*%*Q26Y8"H]?C!$O]P)C@NGK3UH;+O?>8[["SCKRM>DM6*6N2Z[\CL2K MRG7I!6*,C76*2Z4TQ":SP9%(VV2YMDUB0UB3(`?)(E#^0I$:(DHY0,(0Y'[> M_K"W9#W)4YL)MEJ9=E;0J#'7-=CO*K0K*21R*GV`NB4C01C&'!^;RTXGE-,9 M@0XH0_$^,%0B":'.?AYX%A?NC=1>P;>/M%BC'26K]]6/3U9U!5E81";1^O92 MZ5N"23-R7RV6NX)&B0JFLE,E5RA(E<5&,XP1].S@>/\`:SG@4Q[S^AGP=EQ]JO70ESC-#U+5EI2^V)FEUAMF%2V MPG6O*BE4BA,,C1D347+++GK2VM1!#6A'CXJ[/J`H`VY)>N M[5^,.N-TTEL85IOL:\4;.+-BSW6P'&[+>>XS#G%NADKDA36F062K@DQD:AF4 M9/*PF5DX.$:7D`1<"+.GG0JRC-OI/&-T.G?9?;><."L]P8S[LD%B4'2=>+8P MJ=G*R9C;KD^UJ]%6BI/`$D2!$%>;]05%"2@1.!BXO)(IZ06+*?.!%@6_P`V?`O&0^B1P'`7DU>^29X;F%G1%8QG.3%;FZ*4J),7C&,_B,8`B#G&?.,>,^ M`QU2K[M+I?C:I0E0W';4Q$G,&7D^*T1/A)3L@QY]TZB1(H\6<6//X8%C/C.? M^7X\"`I%]Y=U4-&3?H\$VWE?I[>F6RKX.WX.\8%G'I]?M)JR'VR'&,>WC_JQ MY_U\!"DE^]HT*2$#S$-3]NGY4$!WH7(@4Y%4HS0Y#@@/S+=9,O/"2;CSD0LD M>P/&/Y1>?P"!Y!]\34R;*O\`*O7A8CS@&2?D,R#8B-1K*D(L%?,95X;JFEF$ M62LY'Z8!E1\3U#YR#VSZA%KM]\@Y&*0"8^MU"C28*Q@PIVVF/TSWG'CQX_$.#_?`WO_@/4G]YYC^C>`_?`WO_`(#U)_>> M8_HW@/WP-[_X#U)_>>8_HW@/WP-[_P"`]2?WGF/Z-X#]\#>_^`]2?WGF/Z-X M#]\#>_\`@/4G]YYC^C>`_?`WO_@/4G]YYC^C>`_?`WO_`(#U)_>>8_HW@/WP M-[_X#U)_>>8_HW@/WP-[_P"`]2?WGF/Z-X%6[7^\7WAF6P%!V_7-/P2JH+5J M27M%H4<"8O\`+X5?3-+U\64^LA5.#2VJHI((HFCAH69T0%B4)35Y^3<'D"$F M&&_?UJ=F6M?:5KXCOK79Y6EC;%**/6?6\B+"EFE53DUK2N:J+R%.'&"%Z7(% M&1(71+[HG(D&1E"P,!I109#.!P4EE$9A;$Y2B8R)BB<99DXECO(I*[M[$Q-2 M0&<8&J!Y'G\<<"J3WL5]SOL MR,YQHK2/3C1*`.JD1;&+9BT%5J6^THT^?EC%KXEB*W+`$QP%CY@E/F.EB3@S MZ#&;G'L((P6]*'-_.[FP86PF+AJ3JHTCC[W7T;$E-!\`U$3)$:JJ4 MY98TX?.2UK`[%A,'G/D6`XSD.?1?:)]=3RLPYW->6[]].PA9$H=+%O%F-6JO M;/L8$Y2UP1$IR$P7CSX'@6?'\?/X\"RE;?:W=*]/9(CE+0A]<>O_`$X*P'/^N,^<\"ZL+Z5NIJ``""-=?&K(?.?/D0O(3TAZ[^O]LR7EMT9T[;LE&X M/*RAUEI5)DL\/KZG%Y3PDOT-#Z8\"QXSCQC@=N1Z7Z=MX!EH-3M:4)9@L#,+ M1T35R8`QXQXP(828L`(A8Q^'G/X^.!V`C5O61*2!.FUTHE.05C(2R"*BK\DD MO&FJR#$'!",.0C M"$PIB`/&!ASXSCS^..!R7]!:-_\`ABI_^'_MU$/_`"?@5TEL\,@,+CC6Q-*Z<'*9[FZM=>-%4&2TK%`)C#[163:9L,@,.2@CD5=(]+ M-::X89&YR#XIA!86AR.4C6``4F3J:Z\6/L49%)[(K$F6.:9(E M5D$#.),,)Q\3@2Q.+$Z]*ZA\-GLFSKEF+V,W%O-?+XU"HK.54[9!EE'"?H/R)[D["F*4%B/7(DQZ1/@T&33`>X?(*.GS\2P3<"N2YT%AS!!P\VV$Z MOJXD2N*324ZKL3VTRM9!Y,G-C$/5)(-*4"]&V*FFR'5O85;16@PKG`HL)K^> MVD&>V<@&((19P%O0T118PA&"FJF&`0<""(-=P\01!%CS@0189\XR$6,_QQ_' M@=JC%?0*$F+#H9"(A$37`!1:\V,1IF8#%Q9`AB(`L&U(D@E("1&"R#`\BP'( ML^/XYX';^!!UMZUT1?CG$G.[:PBUKEP52H7Q9AGZ(4IACRT38&P%65Q66PE4VFPTXRI9G<%??U6=J3D\9L^'5R-4A>)ZV(A5,L: M'9&SC/>"D[L`XA*I``X(0IA>>P_]:KOTXVP7:4[V2#7W52<7"XN;4Z:Z29GL M%KMRP*V+B-8W*S4*YFAM">Q"(L:J2-!JQ(V?,M#@^IU&"#"@FG$!S2ZOK.VL MV9K&X+"UBG4*IVWKMU]=VN-6*PI")(QU9I%`]A[9@5B7U&@F+`UU(YUL7=J` MM@851QZX"2/)AK2TQYYJ4H.,IO?$+/=6]O'"XX.C7IY):MI732Q2I.X-^*;:B[WM% M>X(54A"W,ZQG&B%E:'Y(9986QUOHV\(;;\\NVPM="#KMJK6V^["KMEPXMZB% M"N[='92Y-C9Q2]>6!G(6I:Y1]LCT1CK\\DE%DY4FB/`,92HT1@0/!GK9;=3_ M`.B!UWQG<9JLM@V+J.RMFZT?J/7Z^ZOTT]0:'2JW9+&<9J\ MC\:W-F4.F)#4F,R^)QXEL>=+JV6>EC2ZHRU*=72%E5R\LNP6Z3[^8MEXRQH= MR]B$\KOA6[C.``20VK:UGKB4<8=[93!:`EXR+(0^0SM)4J=$E3(DA02$J0@E M*F(!YP`E.G+"424#SG.?4LL&,8_Y8X'GX#@.`X#@.`X#@.`X#@.`X#@.`X#@ M0EKQKQ5.K%5-%+TLP*8W`&1]G,F1MJUZ=Y"N,?K(G,CLB9NBUY?EC@ZKE3W, M96O6#R::+`,G^@,!`$( -----END PRIVACY-ENHANCED MESSAGE-----