BFIN-2013.02.01-8K

0001303942-13-000017.txt : 20130204 0001303942-13-000017.hdr.sgml : 20130204 20130201193657 ACCESSION NUMBER: 0001303942-13-000017 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20130201 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130204 DATE AS OF CHANGE: 20130201 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: 13568045 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 bfin-20121231x8k.htm 8-K BFIN-2013.02.01-8K

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): February 1, 2013

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):



o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



o	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 fourth quarter and full year 2012 results in a conference call and webcast for stockholders and analysts on Tuesday, February 5, 2013 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (800) 591-6942 and using participant passcode 22981731. The conference call will be simultaneously webcast at www.bankfinancial.com, under Stockholder Information.



Item 8.01.	Other Events

On February 1, 2013, the Company issued a press release announcing certain asset resolution actions and the results for the year ended December 31, 2012 and issued the Fourth Quarter 2012 Quarterly Financial and Statistical Supplement for the latest five quarters. The press release also reported earnings for the year ended December 31, 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 February 1, 2013

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: February 1, 2013	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 February 1, 2013

99.2			Quarterly Financial and Statistical Supplement

EX-99.1 2 bfin-20121231xexx991.htm PRESS RELEASE DATED FEBRUARY 1, 2013 BFIN-2013.02.01-EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

BANKFINANCIAL CORPORATION ANNOUNCES ADDITIONAL ASSET RESOLUTION ACTIONS AND FOURTH QUARTER 2012 FINANCIAL RESULTS

Burr Ridge, Illinois - February 1, 2013 (GLOBE NEWSWIRE) -- BankFinancial Corporation (BFIN) (the “Company”) today announced that it took additional actions in the fourth quarter of 2012 in furtherance of its plan to materially reduce future nonperforming asset expenses and accelerate the return to the Company's historical asset quality levels. The actions supplemented the Company's previously announced completion of two bulk sales of non-performing assets with a carrying value of $22.7 million.

The actions included the designation of additional loans with a carrying value of $7.5 million as “held for sale” in preparation for a bulk sale, the restructuring of $7.1 million of certain performing classified loans to enable the basis for their classification to be resolved in 2013, and a reduction in the carrying values of certain non-performing assets to levels designed to facilitate or accelerate resolution.

As a result of these actions, the two completed bulk sales and ordinary course of business classifications, resolutions and dispositions that occurred in the fourth quarter of 2012:

•

The Company's nonaccrual loans (excluding the loans that were designated as held for sale) totaled $26.3 million, or 2.51% of total loans, at December 31, 2012, compared to $76.2 million, or 6.05% of total loans, at December 31, 2011. Included in total non-performing loans are purchased impaired loans acquired in the Company's acquisition of Downers Grove National Bank in March, 2011; purchased impaired loans totaled $4.0 million at December 31, 2012, compared to $14.6 million at December 31, 2011.


•	The Company's non-performing assets totaled $38.4 million, or 2.59% of total assets, at December 31, 2012, compared to $98.6 million, or 6.31% of total assets, at December 31, 2011. Included in total non-performing assets are other real estate owned and certain loans held for sale. Other real estate owned totaled $10.4 million at December 31, 2012, compared to $22.5 million at December 31, 2011.

The pre-tax charges that the Company recorded in connection with these actions, combined with the $11.5 million pre-tax charge that the Company recorded in connection with the completed bulk loan sales, substantially contributed to the recording of a pre-tax net operating loss of $25.0 million for the fourth quarter ending December 31, 2012, and a pre-tax net operating loss of $27.1 million of the year ended December 31, 2012. At December 31, 2012, the Company's total risk-based capital ratio was 18.01 percent, its Tier 1 risk-based capital ratio was 16.75 percent, and its Tier 1 leverage ratio was 11.43 percent.

As previously disclosed, the non-performing loans and assets in the closed bulk sales involved multifamily and commercial real estate assets. The remaining element of the bulk sale plan involved the designation of certain owner-occupied and investor-owned 1-4 family loans as held for sale. The designation resulted in a $5.9 million pre-tax charge against the provision for loan losses for the quarter ended December 31, 2012. The loans designated as held for sale generally involved properties that exhibited significant declines in collateral valuations and/or presented limited resolution options. The Company is currently pursuing loan sale alternatives that are expected to result in the disposition of these assets in the first or second quarter of 2013.

The split-note restructurings involved four separate borrowers. The restructurings were conducted pursuant to applicable published regulatory and accounting guidance. The loans had an aggregate carrying value of $7.1 million prior to the completion of the restructurings. At the conclusion of the restructurings, $5.2 million remained on accrual status due to these actions and are expected to be eligible for favorable risk-rating classification in 2013 after a period of sustained performance. The remaining $1.9 million was charged against the provision for loan losses for the quarter ended December 31, 2012.

The Company also recorded a pre-tax charge of $6.0 million against the provision for loan losses with respect to certain purchased impaired loans and other impaired loans, and a $1.8 million valuation adjustment of certain other

real estate owned. These charges are expected to better position these assets for resolution, and were primarily based on updated appraisal and market data, decisions to shorten expected disposition periods or lower sales prices, and in the case of certain loans, decisions to terminate discussions with borrowers and institute legal action.

“These actions and the bulk sales that we have already completed have enabled us to enter 2013 with significantly improved asset quality metrics that are more consistent with our historical asset quality levels,” said F. Morgan Gasior, Chairman and CEO. “As a result, we can return our focus in 2013 to more normalized operations, with an emphasis on diversified and measured loan growth, improving non-interest income, implementing additional expense control measures and taking other steps that we believe should enhance shareholder value.”

A 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 fourth quarter and full year 2012 results in a conference call and webcast for stockholders and analysts on Tuesday, February 5, 2013 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (800) 591-6942 and using participant passcode 22981731. 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 11:59 p.m. Chicago, Illinois Time on March 5, 2013 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.

Caution About Forward-Looking Statements

This release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. BankFinancial intends these statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to significant uncertainties. Because of these uncertainties, 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 bfin-20121231xex992.htm QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT BFIN-2013.02.01-EX99.2

Exhibit 99.2

BANKFINANCIAL CORPORATION

FOURTH 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
	IVQ			IIIQ			IIQ			IQ			IVQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income (loss) to average total assets) ⁽¹⁾	(6.66		)%	(1.39		)%	0.21		%	0.61		%	(11.65		)%
Return on equity (ratio of net income (loss) to average equity)⁽¹⁾	(50.32		)	(10.20		)	1.56			4.61			(75.38		)
Net interest rate spread ⁽¹⁾	3.51			3.69			4.04			4.18			4.19
Net interest margin ⁽¹⁾	3.58			3.76			4.11			4.26			4.28
Efficiency ratio, less goodwill impairment	104.78			105.04			87.07			78.00			90.76
Noninterest expense to average total assets, less goodwill impairment⁽¹⁾	4.05			4.26			3.68			3.49			4.04
Average interest–earning assets to average interest–bearing liabilities	123.20			123.54			123.50			122.46			122.86
Number of full service offices	20			20			20			20			20
Employees (full time equivalents)	352			347			350			353			357

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	20,361		$	19,619		$	17,679		$	24,037		$	24,247
Interest-bearing deposits in other financial institutions	255,403			217,110			203,028			154,043			96,457
Securities, at fair value	77,832			81,748			75,040			81,241			92,832
Loans held-for-sale	2,166			551			505			521			1,918
Loans receivable, net	1,030,465			1,080,489			1,118,928			1,177,719			1,227,391
Other real estate owned, net	10,358			14,994			17,251			20,189			22,480
Stock in Federal Home Loan Bank, at cost	8,412			9,067			10,160			11,336			16,346
Premises and equipment, net	38,251			38,555			38,934			39,044			39,155
Intangible assets	3,038			3,195			3,351			3,508			3,671
Bank owned life insurance	21,645			21,562			21,453			21,333			21,207
FDIC prepaid expense	2,658			3,118			3,738			4,027			4,351
Income tax receivable	461			461			694			1,353			1,809
Other assets	10,142			9,403			11,433			10,786			11,711
Total assets	$	1,481,192		$	1,499,872		$	1,522,194		$	1,549,137		$	1,563,575

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,282,351		$	1,278,196		$	1,289,467		$	1,320,580		$	1,332,552
Borrowings	5,567			6,946			10,081			9,995			9,322
Other liabilities	20,384			16,733			19,703			16,451			21,844
Total liabilities	1,308,302			1,301,875			1,319,251			1,347,026			1,363,718
Stockholders’ equity	172,890			197,997			202,943			202,111			199,857
Total liabilities and stockholders’ equity	$	1,481,192		$	1,499,872		$	1,522,194		$	1,549,137		$	1,563,575

(1)Annualized

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2012												2011
	IVQ			IIIQ			IIQ			IQ			IVQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	13,801		$	14,468		$	15,824		$	16,634		$	17,370
Total interest expense	1,059			1,036			1,112			1,240			1,380
Net interest income before provision	12,742			13,432			14,712			15,394			15,990
Provision for loan losses	24,328			4,453			1,745			996			9,740
Net interest income	(11,586		)	8,979			12,967			14,398			6,250
Noninterest income	1,771			1,831			1,418			1,832			2,004
Noninterest expense	15,207			16,032			14,044			13,436			40,193
Income (loss) before income tax	(25,022		)	(5,222		)	341			2,794			(31,939		)
Income tax expense (benefit)	—			—			(457		)	457			15,110
Net income (loss)	$	(25,022	)	$	(5,222	)	$	798		$	2,337		$	(47,049	)
Basic earnings (loss) per common share	$	(1.25	)	$	(0.26	)	$	0.04		$	0.12		$	(2.38	)
Diluted earnings (loss) per common share	$	(1.25	)	$	(0.26	)	$	0.04		$	0.12		$	(2.38	)

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	550		$	548		$	521		$	557		$	657
Other fee income	380			374			383			385			430
Insurance commissions and annuities income	151			125			112			122			189
Gain on sales of loans, net	246			210			118			267			199
Gain (loss) on disposition of premises and equipment	8			(7		)	(157		)	—			—
Loan servicing fees	115			124			119			128			131
Amortization of servicing assets	(68		)	(61		)	(67		)	(69		)	(74		)
Recovery (impairment) of servicing assets	(17		)	6			(31		)	(13		)	17
Earnings on bank owned life insurance	83			109			120			126			141
Trust income	188			171			190			184			186
Other	135			232			110			145			128
Total noninterest income	$	1,771		$	1,831		$	1,418		$	1,832		$	2,004

Noninterest Expense
Compensation and benefits	$	6,298		$	6,333		$	6,461		$	6,659		$	6,078
Office occupancy and equipment	1,715			1,627			1,755			1,743			1,870
Advertising and public relations	242			136			217			94			60
Information technology	1,104			1,127			1,146			1,261			1,058
Supplies, telephone, and postage	433			416			408			430			434
Amortization of intangibles	157			156			157			163			367
Nonperforming asset management	1,126			1,728			1,117			1,240			1,430
Loss (gain) on sales of other real estate owned	379			(42		)	54			(138		)	113
Valuation adjustments of other real estate owned	1,783			2,352			1,036			389			2,482
Operations of other real estate owned	344			432			601			301			844
FDIC insurance premiums	480			642			309			348			334
Goodwill impairment	—			—			—			—			23,862
Other	1,146			1,125			783			946			1,261
Total noninterest expense	$	15,207		$	16,032		$	14,044		$	13,436		$	40,193

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	Year Ended December 31,
	2012			2011
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	60,727		$	69,708
Total interest expense	4,447			6,915
Net interest income before provision	56,280			62,793
Provision for loan losses	31,522			22,723
Net interest income	24,758			40,070
Noninterest income	6,852			7,317
Noninterest expense	58,719			83,708
Loss before income tax	(27,109		)	(36,321		)
Income tax expense	—			12,375
Net loss	$	(27,109	)	$	(48,696	)
Basic loss per common share	$	(1.36	)	$	(2.46	)
Diluted loss per common share	$	(1.36	)	$	(2.46	)

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	2,176		$	2,667
Other fee income	1,522			1,598
Insurance commissions and annuities income	510			659
Gain on sales of loans, net	841			340
Loss on disposition of premises and equipment	(156		)	(19		)
Loan servicing fees	486			538
Amortization of servicing assets	(265		)	(252		)
Impairment of servicing assets	(55		)	(15		)
Earnings on bank owned life insurance	438			626
Trust income	733			676
Other	622			499
Total noninterest income	$	6,852		$	7,317

Noninterest Expense
Compensation and benefits	$	25,751		$	26,027
Office occupancy and equipment	6,840			7,319
Advertising and public relations	689			890
Information technology	4,638			4,182
Supplies, telephone, and postage	1,687			1,698
Amortization of intangibles	633			1,689
Nonperforming asset management	5,211			4,431
Loss on sales of other real estate owned	253			15
Valuation adjustments of other real estate owned	5,560			3,970
Operations of other real estate owned	1,678			2,350
FDIC insurance premiums	1,779			1,441
Acquisition costs	—			1,761
Goodwill impairment	—			23,862
Other	4,000			4,073
Total noninterest expense	$	58,719		$	83,708

Page 4

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2012												2011
	IVQ			IIIQ			IIQ			IQ			IVQ
DEPOSITS
Noninterest–bearing demand	$	134,597		$	134,474		$	140,801		$	144,182		$	142,084
Savings deposits	144,726			143,212			144,875			147,706			144,515
Money market accounts	349,092			346,989			347,889			343,826			345,011
Interest–bearing NOW accounts	348,683			340,425			336,629			338,269			336,531
Certificates of deposits	305,253			313,096			319,273			346,597			364,411
Deposits	$	1,282,351		$	1,278,196		$	1,289,467		$	1,320,580		$	1,332,552

LOANS
One–to–four family residential real estate loans	$	218,596		$	238,810		$	252,034		$	262,263		$	272,032
Multi–family mortgage loans	352,019			374,164			390,112			410,341			423,615
Nonresidential real estate loans	264,672			288,976			299,567			308,094			311,641
Construction and land loans	8,552			13,774			15,391			19,283			19,852
Commercial loans	61,388			61,053			68,510			81,998			93,932
Commercial leases	139,783			121,200			121,356			124,319			134,990
Consumer loans	2,745			2,273			2,055			2,211			2,147
Total loans	1,047,755			1,100,250			1,149,025			1,208,509			1,258,209
Net deferred loan origination costs	745			827			781			848			908
Allowance for loan losses	(18,035		)	(20,588		)	(30,878		)	(31,638		)	(31,726		)
Loans, net	$	1,030,465		$	1,080,489		$	1,118,928		$	1,177,719		$	1,227,391

Page 5

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2012													2011
	IVQ			IIIQ			IIQ				IQ			IVQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate loans	$	7,299		$	11,334		$	14,214			$	11,602		$	10,622
Multi–family mortgage loans	3,517			11,501			12,640				13,264			14,807
Nonresidential real estate loans	8,985			25,541			30,096				32,892			29,927
Construction and land loans	2,210			3,584			4,005				3,263			3,246
Commercial loans	256			747			3,533				3,527			2,920
Commercial leases	—			68			159				22			22
Consumer loans	—			6			13				8			3
Nonaccrual loans	22,267			52,781			64,660				64,578			61,547

Loans held-for-sale	1,752			—			—				—			—

Other real estate owned:
One–to–four family residential real estate loans	1,760			2,420			3,365				4,251			5,328
Multi–family real estate	720			1,985			2,645				3,005			3,655
Nonresidential real estate	3,504			4,244			4,496				4,756			4,905
Land	1,323			1,761			1,665				1,712			2,237
Other real estate owned	7,307			10,410			12,171				13,724			16,125
Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)	31,326			63,191			76,831			—	78,302			77,672

Purchased impaired loans:
One–to–four family residential real estate loans	$	380		$	2,125		$	2,297			$	3,670		$	3,941
Multi–family mortgage loans	—			1,528			1,491				1,454			1,418
Nonresidential real estate loans	2,568			2,610			2,661				3,308			3,375
Construction and land loans	1,021			1,634			2,324				4,859			4,788
Commercial loans	20			357			677				841			1,078
Purchased impaired loans	3,989			8,254			9,450				14,132			14,600
Purchased other real estate owned:
One–to–four family residential real estate	320			320			535				721			327
Nonresidential real estate	462			577			927				2,264			2,546
Land	2,269			3,687			3,618				3,480			3,482
Purchased other real estate owned	3,051			4,584			5,080				6,465			6,355
Purchased impaired loans and OREO	7,040			12,838			14,530				20,597			20,955
Nonperforming assets	$	38,366		$	76,029		$	91,361			$	98,899		$	98,627

Asset Quality Ratios
Nonperforming assets to total assets	2.59		%	5.07		%	6.00		%		6.38		%	6.31		%
Nonperforming assets to total assets ⁽¹⁾	2.11			4.21			5.05				5.05			4.97
Nonaccrual loans to total loans	2.51			5.55			6.45				6.51			6.05
Nonaccrual loans to total loans ⁽¹⁾	2.13			4.80			5.63				5.34			4.89
Allowance for loan losses to nonaccrual loans	64.39			33.73			41.67				40.20			41.66
Allowance for loan losses to nonaccrual loans ⁽¹⁾	80.99			39.01			47.75				48.99			51.55


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

Page 6

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2012												2011
	IVQ			IIIQ			IIQ			IQ			IVQ
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
30 – 59 days past due	$	8,100		$	3,810		$	1,448		$	14,131		$	11,305
60 – 89 days past due	2,652			230			108			157			2,410
Matured Loans	3,550			7,801			2,553			10,008			15,582
	$	14,302		$	11,841		$	4,109		$	24,296		$	29,297

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	20,588		$	30,878		$	31,638		$	31,726		$	28,778
Charge offs:
One–to–four family residential real estate loans	(7,958		)	(3,145		)	(591		)	(672		)	(2,689		)
Multi–family mortgage loans	(4,355		)	(2,159		)	(135		)	(554		)	(1,893		)
Nonresidential real estate loans	(10,097		)	(5,435		)	(2,202		)	(433		)	(686		)
Construction and land loans	(3,273		)	(806		)	(185		)	(47		)	(249		)
Commercial loans	(1,255		)	(3,536		)	(31		)	(138		)	(1,352		)
Commercial leases	(53		)	(68		)	—			—			(72		)
Consumer loans	(8		)	(72		)	(11		)	(12		)	(6		)
	(26,999		)	(15,221		)	(3,155		)	(1,856		)	(6,947		)
Recoveries:
One–to–four family residential real estate loans	41			7			74			111			11
Multi–family mortgage loans	48			11			96			384			1
Nonresidential real estate loans	6			7			284			31			5
Construction and land loans	2			6			58			184			—
Commercial loans	16			421			132			57			135
Commercial leases	—			—			—			—			—
Consumer loans	5			26			6			5			3
	118			478			650			772			155
Net charge–offs	(26,881		)	(14,743		)	(2,505		)	(1,084		)	(6,792		)
Provision for loan losses	24,328			4,453			1,745			996			9,740
Ending balance	$	18,035		$	20,588		$	30,878		$	31,638		$	31,726

Allowance for loan losses to total loans	1.72		%	1.87		%	2.69		%	2.62		%	2.52		%
Net charge–off ratio ⁽¹⁾	9.97			5.24			0.85			0.35			2.11


(1)	Annualized

Page 7

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2012												2011
	IVQ			IIIQ			IIQ			IQ			IVQ
SELECTED AVERAGE BALANCES
Total average assets	$	1,503,759		$	1,504,438		$	1,525,626		$	1,541,815		$	1,614,989
Total average interest–earning assets	1,416,629			1,419,829			1,440,147			1,454,117			1,483,656
Average loans	1,078,708			1,125,600			1,184,803			1,236,234			1,285,153
Average securities	80,485			74,260			77,077			88,448			95,120
Average stock in FHLB	8,761			9,614			10,741			13,868			16,346
Average other interest–earning assets	248,675			210,355			167,526			115,567			87,037
Total average interest–bearing liabilities	1,149,888			1,149,304			1,166,111			1,187,446			1,207,554
Average interest–bearing deposits	1,143,586			1,141,855			1,156,355			1,178,263			1,198,045
Average borrowings	6,302			7,449			9,756			9,183			9,509
Average stockholders’ equity	198,908			204,857			204,709			202,935			249,659

SELECTED YIELDS AND COST OF FUNDS ^(1):
Total average interest–earning assets	3.88		%	4.05		%	4.42		%	4.60		%	4.64		%
Average loans	4.91			4.94			5.20			5.24			5.18
Average securities	1.55			1.83			2.02			2.01			2.12
Average other interest–earning assets	0.41			0.26			0.28			0.25			0.27
Total average interest–bearing liabilities	0.26			0.36			0.38			0.42			0.45
Average interest–bearing deposits	0.36			0.35			0.38			0.41			0.45
Average borrowings	1.52			1.39			1.15			1.14			1.21
Net interest rate spread	3.51			3.69			4.04			4.18			4.19
Net interest margin	3.58			3.76			4.11			4.26			4.28

(1) Annualized

Page 8

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2012												2011
	IVQ			IIIQ			IIQ			IQ			IVQ
CAPITAL RATIOS
BankFinancial Corporation
Equity to total assets (end of period)	11.67		%	13.20		%	13.33		%	13.05		%	12.78		%
Tangible equity to tangible total assets (end of period)	11.49		%	13.02		%	13.14		%	12.85		%	12.58		%
Risk–based total capital ratio	18.01		%	19.53		%	19.16		%	17.93		%	17.02		%
Risk–based tier 1 capital ratio	16.75		%	18.27		%	17.90		%	16.67		%	15.76		%
Tier 1 leverage ratio	11.43		%	12.95		%	13.07		%	12.79		%	12.30		%
Tier 1 capital	$	168,734		$	193,517		$	198,213		$	197,319		$	194,847
BankFinancial FSB
Risk–based total capital ratio	15.32		%	16.96		%	16.67		%	15.56		%	14.72		%
Risk–based tier 1 capital ratio	14.07			15.70			15.40			14.29			13.45
Tier 1 leverage ratio	9.60			11.13			11.25			10.97			10.48
Tier 1 capital	$	141,629		$	166,248		$	170,573		$	169,242		$	166,406

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	7.42			8.79			7.53			6.62			5.52
High	8.85			9.24			7.56			7.05			8.89
Low	6.62			7.31			5.66			5.25			5.26
Book value per share	8.20			9.40			9.64			9.59			9.48
Tangible book value per share	8.06			9.24			9.47			9.42			9.31
Cash dividends declared on common stock	$	—		$	0.01		$	0.01		$	0.01		$	0.01
Stock repurchases	$	—		$	—		$	—		$	—		$	—
Stock repurchases – shares	—			—			—			—			—

EARNINGS PER SHARE COMPUTATIONS
Net income (loss)	$	(25,022	)	$	(5,222	)	$	798		$	2,337		$	(47,049	)
Average common shares outstanding	21,072,966			21,072,966			21,072,966			21,072,966			21,072,966
Less: Unearned ESOP shares	(1,133,374		)	(1,157,974		)	(1,209,023		)	(1,233,359		)	(1,257,911		)
Unvested restricted stock shares	—			—			(3,524		)	(4,334		)	(7,866		)
Weighted average common shares outstanding	19,939,592			19,914,992			19,860,419			19,835,273			19,807,189
Plus: Dilutive common shares equivalents	—			—			—			807			—
Weighted average dilutive common shares outstanding	19,939,592			19,914,992			19,860,419			19,836,080			19,807,189
Number of anti–dilutive stock options excluded from the diluted earnings per share calculation	—			141,000			1,881,053			2,055,553			2,075,553
Weighted average exercise price of anti–dilutive options	$	—		$	17.21		$	16.58		$	16.53		$	16.54
Basic earnings (loss) per common share	$	(1.25	)	$	(0.26	)	$	0.04		$	0.12		$	(2.38	)
Diluted earnings (loss) per common share	$	(1.25	)	$	(0.26	)	$	0.04		$	0.12		$	(2.38	)

Page 9

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 other real estate owned related income and expense items, nonperforming asset management expenses, acquisition expenses and goodwill impairment from noninterest expense, these measures better reflect our core operating performance.

Page 10

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE THREE MONTHS AND YEAR PERIODS

ENDED DECEMBER 31, 2012 and 2011



	Three months ended December 31,						Year ended December 31,
	2012			2011			2012			2011
Pre–tax pre–provision earnings from core operations
Loss before income taxes	$	(25,022	)	$	(31,939	)	$	(27,109	)	$	(36,321	)
Provision for loan losses	24,328			9,740			31,522			22,723
	(694		)	(22,199		)	4,413			(13,598		)
Adjustments:
Nonperforming asset management	1,126			1,430			5,211			4,431
Loss on sale of other real estate owned	379			113			253			15
Valuation adjustments of other real estate owned	1,783			2,482			5,560			3,970
Operations of other real estate owned	344			844			1,678			2,350
Acquisition expenses	—			—			—			1,761
Goodwill impairment	—			23,862			—			23,862
Adjustments	3,632			28,731			12,702			36,389
Pre–tax pre–provision earnings from core operations	$	2,938		$	6,532		$	17,115		$	22,791

Pre–tax pre–provision earnings from core operations to average total assets (1)	0.78		%	1.62		%	1.13		%	1.41		%


(1)	Annualized

Page 11

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE LATEST FIVE QUARTERS



	2012												2011
	IVQ			IIIQ			IIQ			IQ			IVQ
Pre–tax pre–provision earnings from core operations
Income (loss) before income taxes	$	(25,022	)	$	(5,222	)	$	341		$	2,794		$	(31,939	)
Provision for loan losses	24,328			4,453			1,745			996			9,740
	(694		)	(769		)	2,086			3,790			(22,199		)
Adjustments:
Nonperforming asset management	1,126			1,728			1,117			1,240			1,430
Loss (gain) on sale of other real estate owned	379			(42		)	54			(138		)	113
Valuation adjustments of other real estate owned	1,783			2,352			1,036			389			2,482
Operations of other real estate owned	344			432			601			301			844
Goodwill impairment	—			—			—			—			23,862
Adjustments	3,632			4,470			2,808			1,792			28,731
Pre–tax pre–provision earnings from core operations	$	2,938		$	3,701		$	4,894		$	5,582		$	6,532

Pre–tax pre–provision earnings from core operations to average total assets (1)	0.78		%	0.98		%	1.28		%	1.45		%	1.62		%


(1)	Annualized

Page 12

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