0001193125-12-329160.txt : 20120801 0001193125-12-329160.hdr.sgml : 20120801 20120801171407 ACCESSION NUMBER: 0001193125-12-329160 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20120801 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120801 DATE AS OF CHANGE: 20120801 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: 121000901 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 d389876d8k.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): August 1, 2012

 

 

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 7.01. Regulation FD Disclosure

BankFinancial Corporation (the “Company”) will review second quarter 2012 results in a conference call and webcast for stockholders and analysts on Friday, August 3, 2012 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (800) 573-4752 and using participant passcode 24047748. The conference call will be simultaneously webcast at www.bankfinancial.com, under Stockholder Information.

 

Item 8.01. Other Events

On August 1, 2012, the Company issued a press release announcing the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 and issued the Second Quarter 2012 Quarterly Financial and Statistical Supplement for the latest five quarters. The press release also reported earnings for the three and six months ended June 30, 2012. 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 August 1, 2012
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: August 1, 2012     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 August 1, 2012
99.2    Quarterly Financial and Statistical Supplement
 EX-99.1 2 d389876dex991.htm PRESS RELEASE DATED AUGUST 1, 2012 Press Release dated August 1, 2012

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

BankFinancial Corporation Reports Financial Results for the Second Quarter 2012 and

Will Host a Conference Call and Webcast on August 3, 2012

Burr Ridge, Illinois—(August 1, 2012) BankFinancial Corporation (Nasdaq – BFIN) (“BankFinancial”) announced that it filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 on August 1, 2012. BankFinancial will file its 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 $798,000, or $0.04 per common share, for the three months ended June 30, 2012, compared to $1.0 million or $0.05 per common share, for the three months ended June 30, 2011. Net income for the six months ended June 30, 2012 was $3.1 million, or $0.16 per common share, compared to $249,000, or $0.01 per common share for the six months ended June 30, 2011.

At June 30, 2012, BankFinancial had total assets of $1.522 billion, total loans of $1.119 billion, total deposits of $1.289 billion and stockholders’ equity of $203 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 second quarter 2012 results in a conference call and webcast for stockholders and analysts on Friday, August 3, 2012 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (800) 573-4752 and using participant passcode 24047748. 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, Illinois Time on August 17, 2012 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 20 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 d389876dex992.htm QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT Quarterly Financial and Statistical Supplement

Exhibit 99.2

BANKFINANCIAL CORPORATION

SECOND QUARTER 2012

QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT

FOR THE LATEST FIVE QUARTERS

Note: Certain reclassifications have been made in the prior period’s financial statements and reflected in the Selected Quarterly Financial and Statistical Data tables to conform to the current period’s presentation.

The information and statistical data contained herein have been prepared by BankFinancial Corporation and have been derived or calculated from selected quarterly and period–end historical financial statements prepared in accordance with accounting principles generally accepted in the United States. BankFinancial Corporation is under no obligation to update, keep current, or continue to provide the information contained herein. This information is provided solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or establish any business relationships with BankFinancial Corporation or its subsidiary.

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

PERFORMANCE MEASUREMENTS

           

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

      0.21 %      0.61 %      (11.65 )%      (0.46 )%      0.24 % 

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

      1.56        4.61        (75.38 )      (3.01 )      1.62   

Net interest rate spread (1)

      4.04        4.18        4.19        4.19        4.27   

Net interest margin (1)

      4.11        4.26        4.28        4.29        4.38   

Efficiency ratio, less goodwill impairment

      87.07        78.00        90.76        80.32        77.09   

Noninterest expense to average total assets, less goodwill impairment (1)

      3.68        3.49        4.04        3.54        3.46   

Average interest–earning assets to average interest–bearing liabilities

      123.50        122.46        122.86        122.52        122.55   

Number of full service offices

      20        20        20        20        20   

Employees (full time equivalents)

      350        353        357        360        373   
     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

SUMMARY STATEMENT OF FINANCIAL CONDITION

           

ASSETS

           

Cash and due from other financial institutions

    $ 17,679      $ 24,037      $ 24,247      $ 15,270      $ 14,049   

Interest-bearing deposits in other financial institutions

      203,028        154,043        96,457        92,898        100,433   

Securities, at fair value

      75,040        81,241        92,832        94,880        95,546   

Loans held-for-sale

      505        521        1,918        1,388        —     

Loans receivable, net

      1,118,928        1,177,719        1,227,391        1,270,023        1,291,399   

Other real estate owned

      17,251        20,189        22,480        24,278        27,032   

Stock in Federal Home Loan Bank, at cost

      10,160        11,336        16,346        16,346        16,346   

Premises and equipment, net

      38,934        39,044        39,155        38,948        38,745   

Intangible assets

      3,351        3,508        3,671        26,604        27,074   

Bank owned life insurance

      21,453        21,333        21,207        21,066        20,901   

FDIC prepaid expense

      3,738        4,027        4,351        4,662        5,003   

Income tax receivable

      694        1,353        1,809        1,445        1,862   

Deferred taxes, net

      —          —          —          15,444        13,232   

Other assets

      11,433        10,786        11,711        10,574        11,266   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

    $ 1,522,194      $ 1,549,137      $ 1,563,575      $ 1,633,826      $ 1,662,888   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LIABILITIES AND STOCKHOLDERS’ EQUITY

           

Deposits

    $ 1,289,467      $ 1,320,580      $ 1,332,552      $ 1,352,808      $ 1,378,331   

Borrowings

      10,081        9,995        9,322        9,253        12,595   

Other liabilities

      19,703        16,451        21,844        24,663        21,584   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

      1,319,251        1,347,026        1,363,718        1,386,724        1,412,510   

Stockholders’ equity

      202,943        202,111        199,857        247,102        250,378   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities and stockholders’ equity

    $ 1,522,194      $ 1,549,137      $ 1,563,575      $ 1,633,826      $ 1,662,888   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Annualized

 

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

SUMMARY STATEMENT OF OPERATIONS

           

Total interest income

    $ 15,824      $ 16,634      $ 17,370      $ 17,990      $ 19,000   

Total interest expense

      1,112        1,240        1,380        1,629        1,910   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income before provision

      14,712        15,394        15,990        16,361        17,090   

Provision for loan losses

      1,745        996        9,740        7,384        3,175   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest income

      12,967        14,398        6,250        8,977        13,915   

Noninterest income

      1,418        1,832        2,004        1,863        1,879   

Noninterest expense

      14,044        13,436        40,193        14,637        14,623   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income tax

      341        2,794        (31,939 )      (3,797 )      1,171   

Income tax expense (benefit)

      (457 )      457        15,110        (1,901 )      145   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ 798      $ 2,337      $ (47,049 )    $ (1,896 )    $ 1,026   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings (loss) per common share

    $ 0.04      $ 0.12      $ (2.38 )    $ (0.10 )    $ 0.05   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings (loss) per common share

    $ 0.04      $ 0.12      $ (2.38 )    $ (0.10 )    $ 0.05   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

NONINTEREST INCOME AND EXPENSE

           

Noninterest Income

           

Deposit service charges and fees

    $ 521      $ 557      $ 657      $ 699      $ 691   

Other fee income

      383        385        430        381        413   

Insurance commissions and annuities income

      112        122        189        146        155   

Gain on sales of loans, net

      118        267        199        83        39   

Loss on disposition of premises and equipment

      (157 )      —          —          1        (10 ) 

Loan servicing fees

      119        128        131        138        137   

Amortization of servicing assets

      (67 )      (69 )      (74 )      (73 )      (51 ) 

Impairment (recovery) of servicing assets

      (31 )      (13 )      17        (32 )      —     

Earnings on bank owned life insurance

      120        126        141        165        162   

Trust income

      190        184        186        199        216   

Other

      110        145        128        156        127   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total noninterest income

    $ 1,418      $ 1,832      $ 2,004      $ 1,863      $ 1,879   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Noninterest Expense

           

Compensation and benefits

    $ 6,461      $ 6,659      $ 6,078      $ 6,229      $ 7,120   

Office occupancy and equipment

      1,755        1,743        1,870        1,845        1,736   

Advertising and public relations

      217        94        60        333        260   

Information technology

      1,146        1,261        1,058        1,085        1,091   

Supplies, telephone, and postage

      408        430        434        450        439   

Amortization of intangibles

      157        163        367        470        470   

Nonperforming asset management

      1,117        1,191        1,430        1,267        1,279   

Loss (gain) on sales of other real estate owned

      54        (139 )      113        16        (61 ) 

Operations of other real estate owned

      601        351        844        563        617   

Write down of other real estate owned

      1,036        389        2,482        1,009        299   

FDIC insurance premiums

      309        348        334        354        186   

Acquisition expense

      —          —          —          —          230   

Goodwill impairment

      —          —          23,862        —          —     

Other

      783        946        1,261        1,016        957   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total noninterest expenses

    $ 14,044      $ 13,436      $ 40,193      $ 14,637      $ 14,623   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

DEPOSITS

           

Noninterest–bearing demand

    $ 140,801      $ 144,182      $ 142,084      $ 138,510      $ 138,805   

Savings deposits

      144,875        147,706        144,515        145,549        143,880   

Money market accounts

      347,889        343,826        345,011        350,693        354,897   

Interest–bearing NOW accounts

      336,629        338,269        336,531        333,188        323,997   

Certificates of deposit – Retail

      319,273        346,597        364,411        384,769        416,653   

Certificates of deposit – Wholesale

      —          —          —          99        99   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total certificates of deposit

      319,273        346,597        364,411        384,868        416,752   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Deposits

    $ 1,289,467      $ 1,320,580      $ 1,332,552      $ 1,352,808      $ 1,378,331   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

LOANS

           

One–to–four family residential real estate loans

    $ 252,034      $ 262,263      $ 272,032      $ 284,814      $ 291,135   

Multi–family mortgage loans

      390,112        410,341        423,615        438,858        447,162   

Nonresidential real estate loans

      299,567        308,094        311,641        322,167        328,100   

Construction and land loans

      15,391        19,283        19,852        22,195        24,339   

Commercial loans

      68,510        81,998        93,932        82,553        73,622   

Commercial leases

      121,356        124,319        134,990        145,272        145,858   

Consumer loans

      2,055        2,211        2,147        1,978        3,109   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

      1,149,025        1,208,509        1,258,209        1,297,837        1,313,325   

Net deferred loan origination costs

      781        848        908        964        1,037   

Allowance for loan losses

      (30,878 )      (31,638 )      (31,726 )      (28,778 )      (22,963 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Loans, net

    $ 1,118,928      $ 1,177,719      $ 1,227,391      $ 1,270,023      $ 1,291,399   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

Page 4

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

CREDIT QUALITY:

           

Nonperforming Assets:

           

Nonaccrual loans:

           

One–to–four family residential real estate loans

    $ 14,214      $ 11,602      $ 10,709      $ 17,123      $ 12,663   

Multi–family mortgage loans

      12,640        13,264        14,983        13,140        12,360   

Nonresidential real estate loans

      30,096        32,892        30,396        25,908        12,393   

Construction and land loans

      4,005        3,263        3,263        3,544        504   

Commercial loans

      3,533        3,527        2,940        4,535        3,886   

Commercial leases

      159        22        22        94        72   

Consumer loans

      13        8        3        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Nonaccrual loans

      64,660        64,578        62,316        64,344        41,878   

Other real estate owned:

           

One–to–four family residential real estate

      3,365        4,251        5,328        3,991        5,659   

Multi–family real estate

      2,645        3,005        3,655        4,252        3,987   

Nonresidential real estate

      4,496        4,756        4,905        5,947        6,896   

Land

      1,665        1,712        2,237        3,203        3,218   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other real estate owned

      12,171        13,724        16,125        17,393        19,760   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)

      76,831        78,302        78,441        81,737        61,638   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Purchased impaired loans:

           

One–to–four family residential real estate loans

    $ 2,297      $ 3,670      $ 3,941      $ 3,279      $ 2,201   

Multi–family mortgage loans

      1,491        1,454        1,418        1,434        1,398   

Nonresidential real estate loans

      2,661        3,308        3,375        3,317        3,369   

Construction and land loans

      2,324        4,859        4,788        5,998        7,759   

Commercial loans

      677        841        1,078        1,047        1,029   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Purchased impaired loans

      9,450        14,132        14,600        15,075        15,756   

Purchased other real estate owned:

           

One–to–four family residential real estate

      535        721        327        327        327   

Nonresidential real estate

      927        2,264        2,546        2,771        3,006   

Land

      3,618        3,480        3,482        3,787        3,939   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Purchased other real estate owned

      5,080        6,465        6,355        6,885        7,272   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Purchased impaired loans and OREO

      14,530        20,597        20,955        21,960        23,028   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Nonperforming assets

    $ 91,361      $ 98,899      $ 99,396      $ 103,697      $ 84,666   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Asset Quality Ratios

           

Nonperforming assets to total assets

      6.00 %      6.38 %      6.36 %      6.35 %      5.09 % 

Nonperforming assets to total assets (2)

      5.05        5.05        5.02        5.00        3.71   

Nonaccrual loans to total loans

      6.45        6.51        6.11        6.12        4.39   

Nonaccrual loans to total loans (2)

      5.63        5.34        4.95        4.96        3.19   

Allowance for loan losses to nonaccrual loans

      41.67        40.20        41.25        36.24        39.84   

Allowance for loan losses to nonaccrual loans (2)

      47.75        48.99        50.91        44.73        54.83   

 

(1) Annualized
(2) Asset quality ratios exclude purchased impaired loans and acquired other real estate owned resulting from the Downers Grove National Bank merger.

 

Page 5

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

     2012     2011  
      IIQ     IQ     IVQ     IIIQ     IIQ  

PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE

           

30 – 59 days past due

    $ 1,448      $ 14,131      $ 11,305      $ 4,676      $ 8,557   

60 – 89 days past due

      108        157        2,410        6,256        6,022   

Matured Loans

      2,553        10,008        15,582        10,138        18,475   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 4,109      $ 24,296      $ 29,297      $ 21,070      $ 33,054   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

ALLOWANCE FOR LOAN LOSSES

           

Beginning balance

    $ 31,638      $ 31,726      $ 28,778      $ 22,963      $ 22,504   

Charge offs:

           

One–to–four family residential real estate loans

      (591 )      (672 )      (2,689 )      (584 )      (415 ) 

Multi–family mortgage loans

      (135 )      (554 )      (1,893 )      (842 )      (542 ) 

Nonresidential real estate loans

      (2,202 )      (433 )      (686 )      (12 )      —     

Construction and land loans

      (185 )      (47 )      (249 )      (121 )      (1,771 ) 

Commercial loans

      (31 )      (138 )      (1,352 )      —          (42 ) 

Commercial leases

      —          —          (72 )      —          —     

Consumer loans

      (11 )      (12 )      (6 )      (70 )      (1 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     (3,155 )      (1,856 )      (6,947 )      (1,629 )      (2,771 ) 

Recoveries:

           
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

One–to–four family residential real estate loans

      74        111        11        33        5   

Multi–family mortgage loans

      96        384        1        3        32   

Nonresidential real estate loans

      284        31        5        5        5   

Construction and land loans

      58        184        —          —          —     

Commercial loans

      132        57        135        15        13   

Commercial leases

      —          —          —          —          —     

Consumer loans

      6        5        3        4        —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     650        772        155        60        55   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net (charge–offs) recoveries

      (2,505 )      (1,084 )      (6,792 )      (1,569 )      (2,716 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Provision for loan losses

      1,745        996        9,740        7,384        3,175   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance

    $ 30,878      $ 31,638      $ 31,726      $ 28,778      $ 22,963   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Allowance for loan losses to total loans

      2.69 %      2.62 %      2.52 %      2.22 %      1.75 % 

Net charge–off ratio (1)

      0.85        0.35        2.11        0.48        0.81   

 

(1) Annualized

 

Page 6

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

SELECTED AVERAGE BALANCES

           

Total average assets

    $ 1,525,626      $ 1,541,815      $ 1,614,989      $ 1,651,715      $ 1,689,687   

Total average interest–earning assets

      1,440,147        1,454,117        1,483,656        1,513,816        1,564,244   

Average loans

      1,184,803        1,236,234        1,285,153        1,304,805        1,334,239   

Average securities

      77,077        88,448        95,120        97,984        112,636   

Average stock in FHLB

      10,741        13,868        16,346        16,346        16,562   

Average other interest–earning assets

      167,526        115,567        87,037        94,681        100,807   

Total average interest–bearing liabilities

      1,166,111        1,187,446        1,207,554        1,235,588        1,276,390   

Average interest–bearing deposits

      1,156,355        1,178,263        1,198,045        1,225,368        1,262,883   

Average borrowings

      9,756        9,183        9,509        10,220        13,507   

Average stockholders’ equity

      204,709        202,935        249,659        251,923        252,874   
     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

SELECTED YIELDS AND COST OF FUNDS (1):

           

Total average interest–earning assets

      4.42 %      4.60 %      4.64 %      4.71 %      4.87 % 

Average loans

      5.20        5.24        5.18        5.28        5.46   

Average securities

      2.02        2.01        2.12        2.29        2.73   

Average other interest–earning assets

      0.28        0.25        0.27        0.29        0.29   

Total average interest–bearing liabilities

      0.38        0.42        0.45        0.52        0.60   

Average interest–bearing deposits

      0.38        0.41        0.45        0.52        0.59   

Average borrowings

      1.15        1.14        1.21        1.40        1.81   

Net interest rate spread

      4.04        4.18        4.19        4.19        4.27   

Net interest margin

      4.11        4.26        4.28        4.29        4.38   

 

(1) Annualized

 

Page 7

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

 

 

     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

CAPITAL RATIOS (1)

           

BankFinancial Corporation

           

Equity to total assets (end of period)

      13.33 %      13.05 %      12.78 %      15.12 %      15.06 % 

Tangible equity to tangible total assets (end of period)

      13.14        12.85        12.58        13.72        13.65   

Risk–based total capital ratio

      19.19        17.95        17.04        17.06        17.28   

Risk–based tier 1 capital ratio

      17.92        16.68        15.77        15.80        16.19   

Tier 1 leverage ratio

      13.09        12.84        12.28        12.69        13.15   

Tier 1 capital

    $ 198,517      $ 197,547      $ 195,075      $ 204,282      $ 213,702   

BankFinancial FSB

           

Risk–based total capital ratio

      16.69        15.58        14.73        14.84        14.99   

Risk–based tier 1 capital ratio

      15.43        14.31        13.47        13.58        13.90   

Tier 1 leverage ratio

      11.27        10.98        10.50        10.91        11.05   

Tier 1 capital

    $ 170,877      $ 169,470      $ 166,634      $ 175,504      $ 183,282   
     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

COMMON STOCK AND DIVIDENDS

           

Stock Prices:

           

Close

    $ 7.53      $ 6.62      $ 5.52      $ 6.64      $ 8.47   

High

      7.56        7.05        8.89        8.62        9.55   

Low

      5.66        5.25        5.26        6.51        8.10   

Book value per share

    $ 9.64      $ 9.59      $ 9.48      $ 11.73      $ 11.88   

Tangible book value per share

    $ 9.47      $ 9.42      $ 9.31      $ 10.46      $ 10.60   

Cash dividends declared on common stock

    $ 0.01      $ 0.01      $ 0.01      $ 0.07      $ 0.07   

Stock repurchases

    $ —        $ —        $ —        $ —        $ —     

Stock repurchases – shares

      —          —          —          —          —     
     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

EARNINGS PER SHARE COMPUTATIONS

           

Net income (loss)

    $ 798      $ 2,337      $ (47,049 )    $ (1,896 )    $ 1,026   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Average common shares outstanding

      21,072,966        21,072,966        21,072,966        21,072,966        21,072,966   

Less: Unearned ESOP shares

      (1,209,023 )      (1,233,359 )      (1,257,911 )      (1,325,859 )      (1,350,347 ) 

Unvested restricted stock shares

      (3,524 )      (4,334 )      (7,866 )      (8,667 )      (8,667 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average common shares outstanding

      19,860,419        19,835,273        19,807,189        19,738,440        19,713,952   

Plus: Dilutive common shares equivalents

      —          807        —          —          1,528   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average dilutive common shares outstanding

      19,860,419        19,836,080        19,807,189        19,738,440        19,715,480   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

      1,881,053        2,055,553        2,075,553        2,080,553        2,202,553   

Weighted average exercise price of anti–dilutive options

    $ 16.58      $ 16.53      $ 16.54      $ 16.54      $ 16.48   

Basic earnings (loss) per common share

    $ 0.04      $ 0.12      $ (2.38 )    $ (0.10 )    $ 0.05   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings (loss) per common share

    $ 0.04      $ 0.12      $ (2.38 )    $ (0.10 )    $ 0.05   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Capital calculations for June 30, 2012, March 31, 2012, December 31, 2011, and September 30, 2011 are in accordance with OCC guidance; all previous periods calculated are in accordance with OTS guidance.

 

Page 8

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 pre–tax pre–provision earnings from core operations and pre–tax pre–provision earnings from core operations to average total assets. Management believes that by excluding the provision for loan losses, other real estate owned related income and expense, nonperforming asset management expenses, acquisition expenses and goodwill impairment from noninterest expense, these measures better reflect our core operating performance.

 

Page 9

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE THREE AND SIX MONTH PERIODS

ENDED JUNE 30, 2012 and 2011

 

     Three months ended
June 30,		     Six months ended
June 30,		  
     2012     2011     2012     2011  

Pre–tax pre–provision earnings from core operations

         

Income (loss) before income taxes

    $ 341      $ 1,171      $ 3,135      $ (585 ) 

Provision for loan losses

      1,745        3,175        2,741        5,599   
  

 

 

    

 

 

    

 

 

    

 

 

  
     2,086        4,346        5,876        5,014   

Adjustments:

         

Nonperforming asset management

      1,117        1,279        2,357        1,734   

Loss (gain) on sale of other real estate owned

      54        (61 )      (85 )      (113 ) 

Other real estate owned write–downs

      1,036        299        1,425        478   

Operations of other real estate owned

      601        617        903        943   

Acquisition expenses

      —          230        —          1,761   

Goodwill impairment

      —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjustments

      2,808        2,364        4,600        4,803   
  

 

 

    

 

 

    

 

 

    

 

 

  

Pre–tax pre–provision earnings from core operations

    $ 4,894      $ 6,710      $ 10,476      $ 9,817   
  

 

 

    

 

 

    

 

 

    

 

 

  

Pre–tax pre–provision earnings from core operations to average total assets (1)

      1.28 %      1.59 %      1.37 %      1.22 % 

 

(1) Annualized

 

Page 10

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE LATEST FIVE QUARTERS

     2012     2011  
     IIQ     IQ     IVQ     IIIQ     IIQ  

Pre–tax pre–provision earnings from core operations

           

Income (loss) before income taxes

    $ 341      $ 2,794      $ (31,939 )    $ (3,797 )    $ 1,171   

Provision for loan losses

      1,745        996        9,740        7,384        3,175   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2,086        3,790        (22,199 )      3,587        4,346   

Adjustments:

           

Nonperforming asset management

      1,117        1,191        1,430        1,267        1,279   

Loss (gain) on sale of other real estate owned

      54        (139 )      113        16        (61 ) 

Other real estate owned write–downs

      1,036        389        2,482        1,009        299   

Operations of other real estate owned

      601        351        844        563        617   

Acquisition expenses

      —          —          —          —          230   

Goodwill impairment

      —          —          23,862        —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Adjustments

      2,808        1,792        28,731        2,855        2,364   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Pre–tax pre–provision earnings from core operations

    $ 4,894      $ 5,582      $ 6,532      $ 6,442      $ 6,710   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Pre–tax pre–provision earnings from core operations to average total assets (1)

      1.28 %      1.45 %      1.62 %      1.56 %      1.59 % 

 

(1) Annualized

 

Page 11

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