10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period ended September 30, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from             to             

Commission File Number 0-51331

BANKFINANCIAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

Maryland	75-3199276
(State or Other Jurisdiction of Incorporation)	(I.R.S. Employer Identification No.)
15W060 North Frontage Road, Burr Ridge, Illinois 60527
(Address of Principal Executive Offices)

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

Not Applicable

(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x.

Indicate the number of shares outstanding of each of the Issuer’s classes of common stock as of the latest practicable date. At October 26, 2015, there were 20,501,966 shares of Common Stock, $0.01 par value, outstanding.

BANKFINANCIAL CORPORATION

Form 10-Q

September 30, 2015

Table of Contents

		Page Number
	PART I
Item 1.	Financial Statements and Supplementary Data	1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	46
Item 4.	Controls and Procedures	46
	PART II
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	48
Signatures		49

BANKFINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands, except share and per share data) - Unaudited

	September 30, 2015			December 31, 2014
Assets
Cash and due from other financial institutions	$	8,809		$	9,693
Interest-bearing deposits in other financial institutions	52,661			49,888
Cash and cash equivalents	61,470			59,581
Securities, at fair value	104,242			121,174
Loans receivable, net of allowance for loan losses: September 30, 2015, $10,081 and December 31, 2014, $11,990	1,162,298			1,172,356
Other real estate owned, net	4,809			6,358
Stock in Federal Home Loan Bank, at cost	6,257			6,257
Premises and equipment, net	33,063			34,286
Accrued interest receivable	4,000			3,926
Core deposit intangible	1,441			1,855
Bank owned life insurance	22,335			22,193
Deferred taxes	27,733			31,643
Other assets	3,775			5,781
Total assets	$	1,431,423		$	1,465,410
Liabilities
Deposits
Noninterest-bearing	$	233,192		$	134,129
Interest-bearing	948,342			1,077,584
Total deposits	1,181,534			1,211,713
Borrowings	18,048			12,921
Advance payments by borrowers for taxes and insurance	7,755			11,489
Accrued interest payable and other liabilities	11,012			13,166
Total liabilities	1,218,349			1,249,289
Stockholders’ equity
Preferred Stock, $0.01 par value, 25,000,000 shares authorized, none issued or outstanding	—			—
Common Stock, $0.01 par value, 100,000,000 shares authorized; 20,501,966 shares issued at September 30, 2015 and 21,101,966 shares issued at December 31, 2014	205			211
Additional paid-in capital	186,992			193,845
Retained earnings	34,815			31,584
Unearned Employee Stock Ownership Plan shares	(9,544		)	(10,276		)
Accumulated other comprehensive income	606			757
Total stockholders’ equity	213,074			216,121
Total liabilities and stockholders’ equity	$	1,431,423		$	1,465,410

See accompanying notes to the consolidated financial statements.

1

BANKFINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data) - Unaudited

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Interest and dividend income
Loans, including fees	$	11,792		$	11,983		$	35,451		$	35,767
Securities	267			283			851			866
Other	88			102			249			303
Total interest income	12,147			12,368			36,551			36,936
Interest expense
Deposits	695			744			2,068			2,327
Borrowings	4			2			8			5
Total interest expense	699			746			2,076			2,332
Net interest income	11,448			11,622			34,475			34,604
Provision for (recovery of) loan losses	(956		)	(1,413		)	(2,168		)	20
Net interest income after provision for (recovery of) loan losses	12,404			13,035			36,643			34,584
Noninterest income
Deposit service charges and fees	562			527			1,493			1,438
Other fee income	502			563			1,638			1,677
Insurance commissions and annuities income	68			106			217			279
Gain on sale of loans, net	37			39			92			107
Loss on sale of securities (includes $7 accumulated other comprehensive income reclassifications for unrealized net losses on available for sale securities for the nine months ended September 30, 2014)	—			—			—			(7		)
Gain (loss) on disposition of premises and equipment, net	—			—			(1		)	5
Loan servicing fees	85			102			271			310
Amortization and impairment of servicing assets	(50		)	(32		)	(107		)	(112		)
Earnings on bank owned life insurance	48			57			142			182
Trust	172			171			529			505
Other	285			215			660			556
	1,709			1,748			4,934			4,940
Noninterest expense
Compensation and benefits	5,329			5,492			16,188			17,046
Office occupancy and equipment	1,537			1,687			4,902			5,227
Advertising and public relations	212			272			783			741
Information technology	686			674			1,982			2,004
Supplies, telephone, and postage	393			394			1,189			1,169
Amortization of intangibles	136			143			414			435
Nonperforming asset management	244			418			442			619
Operations of other real estate owned	334			494			780			1,160
FDIC insurance premiums	202			208			699			1,157
Other	1,159			1,375			3,397			3,952
	10,232			11,157			30,776			33,510
Income before income taxes	3,881			3,626			10,801			6,014
Income tax expense	1,532			36			4,242			78
Net income	$	2,349		$	3,590		$	6,559		$	5,936
Basic earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29
Diluted earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29
Weighted average common shares outstanding	19,725,707			20,218,951			19,999,089			20,154,912
Diluted weighted average common shares outstanding	19,731,302			20,235,407			20,004,694			20,170,964

See accompanying notes to the consolidated financial statements.

2

BANKFINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands) - Unaudited

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income	$	2,349		$	3,590		$	6,559		$	5,936
Unrealized holding loss arising during the period	(34		)	(26		)	(244		)	(52		)
Tax effect	13			—			93			—
Unrealized holding loss arising during the period, net of tax	(21		)	(26		)	(151		)	(52		)
Reclassification adjustment for losses included in net income	—			—			—			7
Other comprehensive loss	(21		)	(26		)	(151		)	(45		)
Comprehensive income	$	2,328		$	3,564		$	6,408		$	5,891

See accompanying notes to the consolidated financial statements.

3

BANKFINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands, except per share data) - Unaudited

	Common Stock			Additional Paid-in Capital			Retained Earnings (Deficit)			Unearned Employee Stock Ownership Plan Shares			Accumulated Other Comprehen-sive Income (Loss)			Total
Balance at January 1, 2014	$	211		$	193,594		$	(7,342	)	$	(11,255	)	$	419		$	175,627
Net income	—			—			5,936			—			—			5,936
Other comprehensive loss, net of tax	—			—			—			—			(45		)	(45		)
Nonvested stock awards-stock-based compensation expense	—			52			—			—			—			52
Cash dividends declared on common stock ($0.05 per share)	—			—			(1,055		)	—			—			(1,055		)
ESOP shares earned	—			28			—			733			—			761
Balance at September 30, 2014	$	211		$	193,674		$	(2,461	)	$	(10,522	)	$	374		$	181,276
Balance at January 1, 2015	$	211		$	193,845		$	31,584		$	(10,276	)	$	757		$	216,121
Net income	—			—			6,559			—			—			6,559
Other comprehensive loss, net of tax	—			—			—			—			(151		)	(151		)
Repurchase and retirement of common stock (600,000 shares)	(6		)	(7,382		)	—			—			—			(7,388		)
Nonvested stock awards-stock-based compensation expense, net of tax	—			351			—			—			—			351
Cash dividends declared on common stock ($0.16 per share)	—			—			(3,328		)	—			—			(3,328		)
ESOP shares earned	—			178			—			732			—			910
Balance at September 30, 2015	$	205		$	186,992		$	34,815		$	(9,544	)	$	606		$	213,074

See accompanying notes to the consolidated financial statements.

4

BANKFINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) - Unaudited

	Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities
Net income	$	6,559		$	5,936
Adjustments to reconcile to net income to net cash from operating activities
Provision for (recovery of) loan losses	(2,168		)	20
ESOP shares earned	910			761
Stock–based compensation expense	351			52
Depreciation and amortization	2,754			2,864
Amortization of premiums and discounts on securities and loans	(214		)	(325		)
Amortization of core deposit intangible	414			435
Amortization and impairment of servicing assets	107			112
Net change in net deferred loan origination costs	(384		)	(99		)
Net gain on sale of other real estate owned	(91		)	(40		)
Net gain on sale of loans	(92		)	(107		)
Net loss on sale of securities	—			7
Net loss (gain) on disposition of premises and equipment	1			(5		)
Loans originated for sale	(3,593		)	(3,492		)
Proceeds from sale of loans	3,685			3,599
Other real estate owned valuation adjustments	467			392
Net change in:
Accrued interest receivable	(74		)	343
Earnings on bank owned life insurance	(142		)	(182		)
Other assets	5,906			3,638
Accrued interest payable and other liabilities	(2,154		)	(13		)
Net cash from operating activities	12,242			13,896
Cash flows from investing activities
Securities
Proceeds from maturities	53,410			43,924
Proceeds from principal repayments	5,888			5,259
Proceeds from sales of securities	—			3,663
Purchases of securities	(42,643		)	(57,023		)
Loans receivable
Loan participations sold	3,350			—
Principal payments on loans receivable	333,644			322,271
Originated for investment	(326,624		)	(363,909		)
Purchase of Federal Home Loan Bank of Chicago stock	—			(189		)
Proceeds from sale of other real estate owned	2,487			3,790
Purchase of premises and equipment, net	(363		)	(362		)
Net cash from (used in) investing activities	29,149			(42,576		)

Continued

5

BANKFINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) - Unaudited

	Nine Months Ended September 30,
	2015			2014
Cash flows from financing activities
Net change in deposits	$	(30,179	)	$	(34,406	)
Net change in borrowings	5,127			(221		)
Net change in advance payments by borrowers for taxes and insurance	(3,734		)	(3,670		)
Stock repurchased	(7,388		)	—
Cash dividends paid on common stock	(3,328		)	(1,055		)
Net cash used in financing activities	(39,502		)	(39,352		)
Net change in cash and cash equivalents	1,889			(68,032		)
Beginning cash and cash equivalents	59,581			160,957
Ending cash and cash equivalents	$	61,470		$	92,925
Supplemental disclosures of cash flow information:
Interest paid	$	2,113		$	2,344
Income taxes paid	262			114
Loans transferred to other real estate owned	1,314			3,836

See accompanying notes to the consolidated financial statements.

6

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge, Illinois, is the owner of all of the issued and outstanding capital stock of BankFinancial, F.S.B. (the “Bank”).

Principles of Consolidation: The interim unaudited consolidated financial statements include the accounts of and transactions of BankFinancial Corporation, the Bank, and the Bank’s wholly-owned subsidiaries, Financial Assurance Services, Inc. and BF Asset Recovery Corporation (collectively, “the Company”), and reflect all normal and recurring adjustments that are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. All significant intercompany accounts and transactions have been eliminated. The results of operations for the three- and nine-month periods ended September 30, 2015 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015.

Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ.

Reclassifications: Certain reclassifications have been made in the prior period’s financial statements to conform them to the current period’s presentation.

These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission.

Recent Accounting Pronouncements

In January 2014, the FASB amended existing guidance to clarify when a creditor should derecognize a loan receivable and recognize a collateral asset. An in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This amendment is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of this standard did not have a material impact on the Company’s results of operation or financial position.

In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update will become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

In June 2014, the FASB amended existing guidance related to repurchase-to-maturity transactions, repurchase financings, and disclosures (ASU 2014-11, Transfers and Servicing (Topic 860) - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures). These amendments align the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be

7

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. These amendments require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. These amendments also require expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. These amendments are effective for the first interim or annual period beginning after December 15, 2014. In addition, for public companies, the disclosure for certain transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The adoption of this standard did not have a material effect on the Company’s operating results or financial condition, but an additional disclosure has been added to the financial statements.

NOTE 2 - EARNINGS PER SHARE

Amounts reported in earnings per share reflect earnings available to common stockholders for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned ESOP shares and unvested restricted stock shares. Stock options and restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent that they would have a dilutive effect if converted to common stock.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income available to common stockholders	$	2,349		$	3,590		$	6,559		$	5,936
Average common shares outstanding	20,501,966			21,101,966			20,803,065			21,101,966
Less:
Unearned ESOP shares	(768,327		)	(866,193		)	(792,551		)	(926,705		)
Unvested restricted stock shares	(7,932		)	(16,822		)	(11,425		)	(20,349		)
Weighted average common shares outstanding	19,725,707			20,218,951			19,999,089			20,154,912
Add - Net effect of dilutive stock options and unvested restricted stock	5,595			16,456			5,605			16,052
Diluted weighted average common shares outstanding	19,731,302			20,235,407			20,004,694			20,170,964
Basic earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29
Diluted earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29

Stock options for 1,215,697 shares of common stock were not considered in computing diluted earnings per share for the period ended September 30, 2015 because they were antidilutive.

8

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 3 - SECURITIES

The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2015
Certificates of deposit	$	76,194	$	—	$	—		$	76,194
Equity mutual fund	500		12		—			512
Mortgage-backed securities - residential	18,944		957		(25		)	19,876
Collateralized mortgage obligations - residential	7,596		49		(10		)	7,635
SBA-guaranteed loan participation certificates	25		—		—			25
	$	103,259	$	1,018	$	(35	)	$	104,242
December 31, 2014
Certificates of deposit	$	86,049	$	—	$	—		$	86,049
Equity mutual fund	500		9		—			509
Mortgage-backed securities - residential	23,433		1,218		(40		)	24,611
Collateralized mortgage obligations - residential	9,936		53		(13		)	9,976
SBA-guaranteed loan participation certificates	29		—		—			29
	$	119,947	$	1,280	$	(53	)	$	121,174

Mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the U.S. government has affirmed its commitment to support. All securities reflected in the preceding table were classified as available-for-sale at September 30, 2015 and December 31, 2014.

The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date, if any, are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	76,194	$	76,194
Equity mutual fund	500		512
Mortgage-backed securities - residential	18,944		19,876
Collateralized mortgage obligations - residential	7,596		7,635
SBA-guaranteed loan participation certificates	25		25
	$	103,259	$	104,242

9

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 3 - SECURITIES (continued)

Sales of securities were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Proceeds	$	—	$	—	$	—	$	3,663
Gross gains	—		—		—		—
Gross losses	—		—		—		7

Securities with unrealized losses not recognized in income are as follows:

	Less than 12 Months				12 Months or More					Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2015
Mortgage-backed securities - residential	$	—	$	—	$	1,743	$	(25	)	$	1,743	$	(25	)
Collateralized mortgage obligations - residential	—		—		1,405		(10		)	1,405		(10		)
	$	—	$	—	$	3,148	$	(35	)	$	3,148	$	(35	)
December 31, 2014
Mortgage-backed securities - residential	$	—	$	—	$	2,126	$	(40	)	$	2,126	$	(40	)
Collateralized mortgage obligations - residential	—		—		1,847		(13		)	1,847		(13		)
	$	—	$	—	$	3,973	$	(53	)	$	3,973	$	(53	)

The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary.

Certain residential mortgage-backed securities and certain collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at September 30, 2015, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs.

10

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE

Loans receivable are as follows:

	September 30, 2015			December 31, 2014
One-to-four family residential real estate	$	164,124		$	180,337
Multi-family mortgage	478,057			480,349
Nonresidential real estate	223,528			234,500
Construction and land	1,322			1,885
Commercial loans	80,216			66,882
Commercial leases	221,622			217,143
Consumer	1,927			2,051
	1,170,796			1,183,147
Net deferred loan origination costs	1,583			1,199
Allowance for loan losses	(10,081		)	(11,990		)
Loans, net	$	1,162,298		$	1,172,356

The following tables present the balance in the allowance for loan losses and loans receivable by portfolio segment and based on impairment method:

	Allowance for loan losses						Loan Balances
	Individually evaluated  for impairment		Collectively evaluated  for impairment		Total		Individually evaluated  for impairment		Collectively evaluated  for impairment		Total
September 30, 2015
One-to-four family residential real estate	$	—	$	1,601	$	1,601	$	3,353	$	160,771	$	164,124
Multi-family mortgage	3		3,885		3,888		3,487		474,570		478,057
Nonresidential real estate	66		2,629		2,695		4,097		219,431		223,528
Construction and land	—		74		74		—		1,322		1,322
Commercial loans	17		772		789		75		80,141		80,216
Commercial leases	—		1,006		1,006		—		221,622		221,622
Consumer	—		28		28		—		1,927		1,927
	$	86	$	9,995	$	10,081	$	11,012	$	1,159,784	1,170,796
Net deferred loan origination costs											1,583
Allowance for loan losses											(10,081		)
Loans, net											$	1,162,298

11

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

	Allowance for loan losses						Loan Balances
	Individually evaluated  for impairment		Collectively evaluated  for impairment		Total		Individually evaluated  for impairment		Collectively evaluated  for impairment		Total
December 31, 2014
One-to-four family residential real estate	$	8	$	2,140	$	2,148	$	4,174	$	176,163	$	180,337
Multi-family mortgage	226		4,979		5,205		5,282		475,067		480,349
Nonresidential real estate	236		2,704		2,940		4,690		229,810		234,500
Construction and land	—		80		80		—		1,885		1,885
Commercial loans	—		554		554		76		66,806		66,882
Commercial leases	—		1,009		1,009		—		217,143		217,143
Consumer	—		54		54		—		2,051		2,051
	$	470	$	11,520	$	11,990	$	14,222	$	1,168,925	1,183,147
Net deferred loan origination costs											1,199
Allowance for loan losses											(11,990		)
Loans, net											$	1,172,356

12

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

Activity in the allowance for loan losses is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Beginning balance	$	10,810		$	14,452		$	11,990		$	14,154
Loans charged off:
One-to-four family residential real estate	(125		)	(298		)	(327		)	(644		)
Multi-family mortgage	(9		)	(97		)	(189		)	(781		)
Nonresidential real estate	(26		)	(695		)	(289		)	(1,461		)
Construction and land	—			—			—			(1		)
Commercial loans	—			(78		)	(98		)	(100		)
Commercial leases	—			(8		)	—			(8		)
Consumer	(3		)	—			(11		)	(10		)
	(163		)	(1,176		)	(914		)	(3,005		)
Recoveries:
One-to-four family residential real estate	16			26			295			134
Multi-family mortgage	169			11			177			31
Nonresidential real estate	24			116			49			400
Construction and land	38			29			44			287
Commercial loans	143			1,005			606			1,027
Commercial leases	—			—			1			—
Consumer	—			1			1			3
	390			1,188			1,173			1,882
Net recoveries (charge-offs)	227			12			259			(1,123		)
Provision for (recovery of) loan losses	(956		)	(1,413		)	(2,168		)	20
Ending balance	$	10,081		$	13,051		$	10,081		$	13,051

Purchased Impaired Loans

As a result of its acquisition of Downers Grove National Bank, the Company holds purchased loans for which there was evidence of deterioration of credit quality since origination and for which it was probable that all contractually required payments would not be collected as of the date of the acquisition. The Company held one purchased impaired loan at September 30, 2015 and December 31, 2014, with a recorded investment value of $52,000.

13

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

Impaired loans

Several of the following disclosures are presented by “recorded investment,” which the FASB defines as “the amount of the investment in a loan, which is not net of a valuation allowance, but which does reflect any direct write-down of the investment.” The following represents the components of recorded investment:

Loan principal balance

Less unapplied payments

Plus negative unapplied balance

Less escrow balance

Plus negative escrow balance

Plus unamortized net deferred loan costs

Less unamortized net deferred loan fees

Plus unamortized premium

Less unamortized discount

Less previous charge-offs

Plus recorded accrued interest

Less reserve for uncollected interest

= Recorded investment

The following tables present loans individually evaluated for impairment by class of loans:

									Three months ended September 30, 2015				Nine months ended September 30, 2015
	Loan Balance		Recorded Investment		Partial Charge-off		Allowance for Loan Losses Allocated		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
September 30, 2015
With no related allowance recorded:
One-to-four family residential real estate	$	3,543	$	2,830	$	785	$	—	$	2,742	$	6	$	2,674	$	19
One-to-four family residential real estate - non-owner occupied	567		520		57		—		704		6		1,126		31
Multi-family mortgage	2,763		2,739		—		—		1,970		19		1,856		69
Wholesale commercial lending	513		508		—		—		510		9		515		26
Nonresidential real estate	2,907		2,682		212		—		2,741		24		2,999		97
	10,293		9,279		1,054		—		8,667		64		9,170		242
With an allowance recorded:
Multi-family mortgage	238		233		—		3		587		—		1,483		—
Nonresidential real estate	1,481		1,389		67		66		1,106		—		2,114		14
Commercial loans - secured	76		75		—		17		19		—		8		—
	1,795		1,697		67		86		1,712		—		3,605		14
Total	$	12,088	$	10,976	$	1,121	$	86	$	10,379	$	64	$	12,775	$	256

14

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

	Loan Balance		Recorded Investment		Partial Charge-off		Allowance for Loan Losses Allocated		Average Investment in Impaired Loans		Interest Income Recognized
December 31, 2014
With no related allowance recorded:
One-to-four family residential real estate	$	3,246	$	2,656	$	649	$	—	$	2,777	$	44
One-to-four family residential real estate - non-owner occupied	1,481		1,425		57		—		745		76
Multi-family mortgage	3,174		2,593		481		—		3,419		120
Wholesale commercial lending	519		513		—		—		401		—
Nonresidential real estate	2,118		2,068		6		—		4,175		72
Commercial loans - secured	76		76		—		—		93		3
	10,614		9,331		1,193		—		11,610		315
With an allowance recorded:
One-to-four family residential real estate - non-owner occupied	115		78		37		8		202		—
Multi-family mortgage	2,713		2,131		624		226		2,343		48
Nonresidential real estate	2,950		2,605		326		236		1,718		67
	5,778		4,814		987		470		4,263		115
Total	$	16,392	$	14,145	$	2,180	$	470	$	15,873	$	430

15

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

Nonaccrual Loans

The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans:

	Loan Balance		Recorded Investment		Loans Past Due Over 90 Days, Still Accruing
September 30, 2015
One-to-four family residential real estate	$	3,139	$	2,539	$	—
One-to-four family residential real estate – non owner occupied	359		413		—
Multi-family mortgage	1,482		1,399		—
Nonresidential real estate	2,575		2,263		—
Commercial loans – secured	76		75		—
	$	7,631	$	6,689	$	—
December 31, 2014
One-to-four family residential real estate	$	4,793	$	4,210	$	—
One-to-four family residential real estate – non owner occupied	291		198		—
Multi-family mortgage	5,638		4,481		—
Nonresidential real estate	4,023		3,245		—
Commercial loans – secured	76		76		—
Consumer	3		3		—
	$	14,824	$	12,213	$	—

Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The Company’s reserve for uncollected loan interest was $275,000 and $464,000 at September 30, 2015 and December 31, 2014, respectively. When a loan is on non-accrual status and the ultimate collectability of the total principal of the loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on non-accrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method pursuant to the provisions of FASB ASC 310–10, as applicable. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported pursuant to the provisions of FASB ASC 310–10, as applicable.

16

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

Past Due Loans

The following tables present the aging of the recorded investment of loans at September 30, 2015 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
One-to-four family residential real estate	$	61	$	376	$	2,272	$	2,709	$	117,063	$	119,772
One-to-four family residential real estate - non-owner occupied	3		—		413		416		43,895		44,311
Multi-family mortgage	517		178		882		1,577		317,154		318,731
Wholesale commercial lending	—		399		—		399		156,295		156,694
Nonresidential real estate	—		—		2,262		2,262		219,879		222,141
Construction	—		—		—		—		31		31
Land	—		—		—		—		1,289		1,289
Commercial loans:
Secured	—		—		75		75		22,731		22,806
Unsecured	—		—		—		—		3,217		3,217
Municipal	—		—		—		—		1,610		1,610
Warehouse lines	—		—		—		—		15,406		15,406
Health care	—		—		—		—		20,030		20,030
Aviation	—		—		—		—		1,023		1,023
Other	—		—		—		—		16,425		16,425
Commercial leases:
Investment rated commercial leases	—		20		—		20		159,008		159,028
Below investment grade	—		—		—		—		7,377		7,377
Non-rated	—		86		—		86		46,341		46,427
Lease pools	—		—		—		—		10,257		10,257
Consumer	—		—		—		—		1,935		1,935
	$	581	$	1,059	$	5,904	$	7,544	$	1,160,966	$	1,168,510

17

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

The following tables present the aging of the recorded investment of loans at December 31, 2014 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
One-to-four family residential real estate	$	1,415	$	276	$	3,844	$	5,535	$	126,054	$	131,589
One-to-four family residential real estate - non-owner occupied	320		165		198		683		47,350		48,033
Multi-family mortgage	2,314		1,187		3,363		6,864		334,173		341,037
Wholesale commercial lending	—		—		—		—		135,395		135,395
Nonresidential real estate	376		444		3,245		4,065		227,078		231,143
Construction	—		—		—		—		63		63
Land	—		—		—		—		1,814		1,814
Commercial loans:
Secured	—		—		76		76		11,863		11,939
Unsecured	—		1		—		1		1,884		1,885
Municipal	—		—		—		—		2,243		2,243
Warehouse lines	—		—		—		—		14,362		14,362
Health care	—		—		—		—		24,154		24,154
Aviation	—		—		—		—		1,111		1,111
Other	—		—		—		—		11,339		11,339
Commercial leases:
Investment rated commercial leases	426		—		—		426		160,830		161,256
Below investment grade	136		—		—		136		11,246		11,382
Non-rated	8		—		—		8		35,672		35,680
Lease pools	—		—		—		—		10,180		10,180
Consumer	18		1		3		22		2,038		2,060
	$	5,013	$	2,074	$	10,729	$	17,816	$	1,158,849	$	1,176,665

Troubled Debt Restructurings

The Company evaluates loan extensions or modifications in accordance with FASB ASC 310–40 with respect to the classification of the loan as a TDR. In general, if the Company grants a loan extension or modification to a borrower for other than an insignificant period of time that includes a below–market interest rate, principal forgiveness, payment forbearance or other concession intended to minimize the economic loss to the Company, the loan extension or loan modification is classified as a TDR. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal then due and payable, management measures any impairment on the restructured loan in the same manner as for impaired loans as noted above.

The Company had $3.0 million of TDRs at September 30, 2015 and December 31, 2014. There were no specific valuation reserves allocated to those loans at September 30, 2015 and $38,000 in specific valuation reserves were allocated at December 31, 2014. The Company had no outstanding commitments to borrowers whose loans were classified as TDRs at either date.

18

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

The following table presents loans classified as TDRs:

	September 30, 2015		December 31, 2014
One-to-four family residential real estate	$	1,657	$	1,917
Multi-family mortgage	1,126		510
Troubled debt restructured loans – accrual loans	2,783		2,427
One-to-four family residential real estate	208		230
Multi-family mortgage	—		346
Troubled debt restructured loans – nonaccrual loans	208		576
Total troubled debt restructured loans	$	2,991	$	3,003

During the three and nine months ending September 30, 2015 and 2014, the terms of certain loans were modified and classified as TDRs. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

The following tables present TDR activity:

	Three Months Ended September 30,
	2015					2014
	Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment		Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment
One-to-four family residential real estate	5	$	338	$	211	1	$	345	$	345
Commercial loans - secured	—	—		—		1	210		5
Total	5	$	338	$	211	2	$	555	$	350

	Due to reduction in interest rate		Due to extension of maturity date		Due to permanent reduction in recorded investment		Total
For the Three Months Ended September 30, 2015
One-to-four family residential real estate	$	—	$	79	$	132	$	211
For the Three Months Ended September 30, 2014
One-to-four family residential real estate	$	—	$	345	$	—	$	345
Commercial loans - secured	—		—		5		5
Total	$	—	$	345	$	5	$	350

The TDRs described above had no impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in charge-offs of $127,000 for the three months ended September 30, 2015. The TDRs had no impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in $205,000 of charge-offs for the three months ended September 30, 2014.

19

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

	Nine Months Ended September 30,
	2015					2014
	Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment		Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment
One-to-four family residential real estate	6	$	401	$	274	4	$	485	$	444
Commercial loans - secured	—	—		—		1	210		5
Total	6	$	401	$	274	5	$	695	$	449

	Due to reduction in interest rate		Due to extension of maturity date		Due to permanent reduction in recorded investment		Total
For the Nine Months Ended September 30, 2015
One-to-four family residential real estate	$	—	$	142	$	132	$	274
For the Nine Months Ended September 30, 2014
One-to-four family residential real estate	$	19	$	373	$	52	$	444
Commercial loans - secured	—		—		5		5
Total	$	19	$	373	$	57	$	449

The TDRs described above had no material impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in $127,000 of charge-offs for the nine months ended September 30, 2015. The TDRs decreased interest income by $1,000, resulted in no change to the allowance for loan losses allocated and resulted in charge-offs of $246,000 for the nine months ended September 30, 2014.

The following table presents TDRs for which there was a payment default during the nine months ending September 30, 2015 and 2014 within twelve months following the modification.

	2015			2014
	Number of loans	Recorded investment		Number of loans	Recorded investment
One-to-four family residential real estate	1	$	27	1	$	28

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

The TDRs for which there was a payment default resulted in no change to the allowance for loan losses allocated and resulted in no charge-offs during the nine months ending September 30, 2015 and September 30, 2014.

There were certain other loan modifications during the three and nine months ending September 30, 2015 and 2014 that did not meet the definition of a TDR. These loans had a total recorded investment of $2.6 million and $1.6 million at September 30, 2015 and 2014, respectively. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans based on credit risk.

20

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings:

Special Mention. A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans categorized as Substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. The risk rating guidance published by the Office of the Comptroller of the Currency clarifies that a loan with a well-defined weakness does not have to present a probability of default for the loan to be rated Substandard, and that an individual loan’s loss potential does not have to be distinct for the loan to be rated Substandard.

Nonaccrual. An asset classified as Nonaccrual has all the weaknesses inherent in one classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered “Pass” rated loans.

As of September 30, 2015, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Special Mention		Substandard		Nonaccrual		Total
One-to-four family residential real estate	$	117,242	$	—	$	429	$	2,114	$	119,785
One-to-four family residential real estate - non-owner occupied	43,705		223		—		411		44,339
Multi-family mortgage	312,554		456		5,741		1,404		320,155
Wholesale commercial lending	157,389		—		513		—		157,902
Nonresidential real estate	197,920		18,065		5,259		2,284		223,528
Construction	31		—		—		—		31
Land	472		—		819		—		1,291
Commercial loans:
Secured	22,509		—		148		75		22,732
Unsecured	2,651		—		555		—		3,206
Municipal	1,599		—		—		—		1,599
Warehouse lines	16,369		—		—		—		16,369
Health care	19,995		—		—		—		19,995
Aviation	1,021		—		—		—		1,021
Other	15,294		—		—		—		15,294
Commercial leases:
Investment rated commercial leases	157,893		—		—		—		157,893
Below investment grade	7,336		—		—		—		7,336
Non-rated	46,175		—		—		—		46,175
Lease pools	10,218		—		—		—		10,218
Consumer	1,927		—		—		—		1,927
Total	$	1,132,300	$	18,744	$	13,464	$	6,288	$	1,170,796

21

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 4 - LOANS RECEIVABLE (continued)

As of December 31, 2014, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Special Mention		Substandard		Nonaccrual		Total
One-to-four family residential real estate	$	126,102	$	615	$	1,046	$	4,228	$	131,991
One-to-four family residential real estate - non-owner occupied	46,253		931		964		198		48,346
Multi-family mortgage	336,557		609		3,430		4,515		345,111
Wholesale commercial lending	134,719		—		519		—		135,238
Nonresidential real estate	223,385		1,170		6,698		3,247		234,500
Construction	60		—		—		—		60
Land	1,212		—		613		—		1,825
Commercial loans:
Secured	11,863		—		7		76		11,946
Unsecured	1,147		40		698		—		1,885
Municipal	2,213		—		—		—		2,213
Warehouse lines	11,296		—		—		—		11,296
Health care	24,127		—		—		—		24,127
Aviation	1,108		—		—		—		1,108
Other	14,307		—		—		—		14,307
Commercial leases:
Investment rated commercial leases	160,208		—		—		—		160,208
Below investment grade	11,309		—		—		—		11,309
Non-rated	35,473		—		—		—		35,473
Lease pools	10,153		—		—		—		10,153
Consumer	2,048		—		—		3		2,051
Total	$	1,153,540	$	3,365	$	13,975	$	12,267	$	1,183,147

NOTE 5 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Securities sold under agreements to repurchase are shown below.

	September 30, 2015
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions	$	3,048	$	—	$	—	$	—	$	3,048
Gross amount of recognized liabilities for repurchase agreements in Statement of Condition									$	3,048
	December 31, 2014
	Overnight and Continuous		Up to 30 days		30 - 90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions	$	2,921	$	—	$	—	$	—	$	2,921
Gross amount of recognized liabilities for repurchase agreements in Statement of Condition									$	2,921

22

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 5 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (continued)

Securities sold under agreements to repurchase were secured by mortgage-backed securities with a carrying amount of $6.1 million and $6.8 million at September 30, 2015 and December 31, 2014, respectively. Also included in total borrowings were advances from the Federal Home Loan Bank of Chicago (the "FHLBC") of $15.0 million and $10.0 million at September 30, 2015 and December 31, 2014, respectively.

As the securities’ values fluctuate due to market conditions, the Company has no control over the market value.  The Company is obligated to promptly transfer additional securities if the market value of the securities fall below the repurchase price, per the agreement.

NOTE 6 - FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

• Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

• Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Securities: The fair values of marketable equity securities are generally determined by quoted prices, in active markets, for each specific security (Level 1). If Level 1 measurement inputs are not available for a marketable equity security, we determine its fair value based on the quoted price of a similar security traded in an active market (Level 2). The fair values of debt securities are generally determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2).

Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Mortgage Servicing Rights: On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. The fair values of mortgage servicing rights are based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2).

23

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 6 - FAIR VALUE (continued)

The following table sets forth the Company’s financial assets that were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
September 30, 2015
Securities:
Certificates of deposit	$	—	$	76,194	$	—	$	76,194
Equity mutual fund	512		—		—		512
Mortgage-backed securities – residential	—		19,876		—		19,876
Collateralized mortgage obligations – residential	—		7,635		—		7,635
SBA-guaranteed loan participation certificates	—		25		—		25
	$	512	$	103,730	$	—	$	104,242
December 31, 2014
Securities:
Certificates of deposit	$	—	$	86,049	$	—	$	86,049
Equity mutual fund	509		—		—		509
Mortgage-backed securities - residential	—		24,611		—		24,611
Collateralized mortgage obligations – residential	—		9,976		—		9,976
SBA-guaranteed loan participation certificates	—		29		—		29
	$	509	$	120,665	$	—	$	121,174

24

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 6 - FAIR VALUE (continued)

The following table sets forth the Company’s assets that were measured at fair value on a non-recurring basis:

	Fair Value Measurement Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
September 30, 2015
Impaired loans:
Multi-family mortgage	$	—	$	—	$	230	$	230
Nonresidential real estate	—		—		1,323		1,323
Commercial loans	—		—		58		58
	$	—	$	—	$	1,611	$	1,611
Other real estate owned:
One-to-four family residential real estate	$	—	$	—	$	42	$	42
Multi-family mortgage	—		—		962		962
Nonresidential real estate	—		—		107		107
Land	—		—		749		749
	$	—	$	—	$	1,860	$	1,860
Mortgage servicing rights	$	—	$	297	$	—	$	297
December 31, 2014
Impaired loans:
One-to-four family residential real estate	$	—	$	—	$	70	$	70
Multi-family mortgage	—		—		1,905		1,905
Nonresidential real estate	—		—		2,369		2,369
	$	—	$	—	$	4,344	$	4,344
Other real estate owned:
One-to-four family residential real estate	$	—	$	—	$	55	$	55
Multi-family mortgage	—		—		1,265		1,265
Nonresidential real estate	—		—		126		126
Land	—		—		753		753
	$	—	$	—	$	2,199	$	2,199
Mortgage servicing rights	$	—	$	160	$	—	$	160

Impaired loans, which are measured for impairment using the fair value of the collateral for collateral–dependent loans and have specific valuation allowances, had a carrying amount of $1.7 million and a valuation allowance of $86,000 at September 30, 2015, compared to a carrying amount of $4.8 million and a valuation allowance of $470,000 at December 31, 2014, resulting in a decrease in the provision for loan losses of $384,000 for the nine months endedSeptember 30, 2015, and an increase in the provision for loan losses of $345,000 for the nine months endedSeptember 30, 2014.

Other real estate owned ("OREO"), which is carried at the lower of cost or fair value less costs to sell, had a carrying value of $2.9 million and a valuation allowance of $1.0 million at September 30, 2015, compared to a carrying value of $3.0 million and a valuation allowance of $803,000 at December 31, 2014. There were $467,000 of valuation adjustments of OREO recorded for

25

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 6 - FAIR VALUE (continued)

the nine months endedSeptember 30, 2015, and $392,000 of valuation adjustments of OREO recorded for the nine months endedSeptember 30, 2014.

A pre-tax provision of $2,000 on our mortgage servicing rights portfolio was included in noninterest income for the nine months endedSeptember 30, 2015, compared to a pre-tax provision of $6,000 for the same period in 2014.

The following table presents quantitative information, based on certain empirical data with respect to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2015:

	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Multi-family mortgage loans	$	230	Sales comparison	Comparison between sales and income approaches	10%
			Income approach	Cap Rate	10%
Nonresidential real estate loans	1,323		Sales comparison	Comparison between sales and income approaches	-25.74% to 1.24% (-21%)
			Income approach	Cap Rate	8.5%
Commercial loans	58		Sales comparison	Discount applied to valuation	34.3%
Impaired loans	$	1,611
Other real estate owned:
One-to-four family residential real estate	$	42	Sales comparison	Discount applied to valuation	-0.35% to 2.8% (0.03%)
Multi-family mortgage	962		Sales comparison	Comparison between sales and income approaches	-67.74% to 11.68% (7%)
Nonresidential real estate loans	107		Sales comparison	Comparison between sales and income approaches	58%
Land	749		Sales comparison	Discount applied to valuation	-7.7% to 17.24% (6%)
Other real estate owned	$	1,860

26

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 6 - FAIR VALUE (continued)

The following table presents quantitative information, based on certain empirical data with respect to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2014:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans
One-to-four family residential real estate	$	70	Sales comparison	Discount applied to valuation	4.8%
Multi-family mortgage	1,905		Sales comparison	Comparison between sales and income approaches	-2.1%- 43.7% (41%)
			Income approach	Cap Rate	9.6%-13.8% (10%)
Nonresidential real estate	2,369		Sales comparison	Comparison between sales and income approaches	-2.1%-33.9% (24%)
			Income approach	Cap Rate	10%-11% (10%)
	$	4,344
Other real estate owned
One-to-four family residential real estate	$	55	Sales comparison	Discount applied to valuation	6.3%-7.7% (7%)
Multi-family mortgage	1,265		Sales comparison	Comparison between sales and income approaches	-6.6%-13.5% (0.4%)
Nonresidential real estate	126		Sales comparison	Comparison between sales and income approaches	32.3%
Land	753		Sales comparison	Discount applied to valuation	-21.9%-4.2% (-10%)
	$	2,199

27

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 6 - FAIR VALUE (continued)

The carrying amount and estimated fair value of financial instruments are as follows:

			Fair Value Measurements at September 30, 2015 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	61,470	$	8,809	$	52,661	$	—	$	61,470
Securities	104,242		512		103,730		—		104,242
Loans receivable, net of allowance for loan losses	1,162,298		—		1,159,706		1,611		1,161,317
FHLBC stock	6,257		—		—		—		N/A
Accrued interest receivable	4,000		—		4,000		—		4,000
Financial liabilities
Noninterest-bearing demand deposits	$	233,192	$	—	$	233,192	$	—	$	233,192
Savings deposits	152,585		—		152,585		—		152,585
NOW and money market accounts	572,860		—		572,860		—		572,860
Certificates of deposit	222,897		—		222,878		—		222,878
Borrowings	18,048		—		18,049		—		18,049
Accrued interest payable	46		—		46		—		46

			Fair Value Measurements at  December 31, 2014 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	59,581	$	9,693	$	49,888	$	—	$	59,581
Securities	121,174		509		120,665		—		121,174
Loans receivable, net of allowance for loan losses	1,172,356		—		1,166,181		4,344		1,170,525
FHLBC stock	6,257		—		—		—		N/A
Accrued interest receivable	3,926		—		3,926		—		3,926
Financial liabilities
Noninterest-bearing demand deposits	$	134,129	$	—	$	134,129	$	—	$	134,129
Savings deposits	154,532		—		154,532		—		154,532
NOW and money market accounts	690,193		—		690,193		—		690,193
Certificates of deposit	232,859		—		232,588		—		232,588
Borrowings	12,921		—		12,908		—		12,908
Accrued interest payable	89		—		89		—		89

For purposes of the above table, the following assumptions were used:

Cash and Cash Equivalents: The estimated fair values for cash and cash equivalents are based on their carrying value due to the short-term nature of these assets.

Loans: The estimated fair value for loans has been determined by calculating the present value of future cash flows based on the current rate the Company would charge for similar loans with similar maturities, applied for an estimated time period until the loan is assumed to be repriced or repaid. The estimated fair values of loans held for sale are based on quoted market prices.

FHLBC Stock: It is not practicable to determine the fair value of FHLBC stock due to the restrictions placed on its transferability.

28

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 6 - FAIR VALUE (continued)

Deposit Liabilities: The estimated fair value for certificates of deposit has been determined by calculating the present value of future cash flows based on estimates of rates the Company would pay on such deposits, applied for the time period until maturity. The estimated fair values of noninterest-bearing demand, NOW, money market, and savings deposits are assumed to approximate their carrying values as management establishes rates on these deposits at a level that approximates the local market area. Additionally, these deposits can be withdrawn on demand.

Borrowings: The estimated fair values of advances from the FHLBC and notes payable are based on current market rates for similar financing. The estimated fair value of securities sold under agreements to repurchase is assumed to equal its carrying value due to the short-term nature of the liability.

Accrued Interest: The estimated fair values of accrued interest receivable and payable are assumed to equal their carrying value.

Off-Balance-Sheet Instruments: Off-balance-sheet items consist principally of unfunded loan commitments, standby letters of credit, and unused lines of credit. The estimated fair values of unfunded loan commitments, standby letters of credit, and unused lines of credit are not material.

While the above estimates are based on management’s judgment of the most appropriate factors, as of the balance sheet date, there is no assurance that the estimated fair values would have been realized if the assets were disposed of or the liabilities settled at that date, since market values may differ depending on the various circumstances. The estimated fair values would also not apply to subsequent dates.

In addition, other assets and liabilities that are not financial instruments, such as premises and equipment, are not included in the above disclosures.

NOTE 7 – EQUITY INCENTIVE PLANS

On June 27, 2006, the Company’s stockholders approved the BankFinancial Corporation 2006 Equity Incentive Plan, which authorized the Human Resources Committee of the Board of Directors of the Company to grant a variety of cash- and equity-based incentive awards, including stock options, stock appreciation rights, restricted stock, performance shares and other incentive awards, to employees and directors aggregating up to 3,425,275 shares of the Company’s common stock.

The Human Resources Committee may grant stock options to purchase shares of the Company’s common stock to certain employees and directors of the Company. The exercise price for the stock options is the fair market value of the common stock on the dates of the grants.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. The risk-free interest rate was determined using the yield available on the option grant date for a zero-coupon U.S. Treasury security with a term equivalent to the expected life of the option. The expected life for options granted represents the period the option is expected to be outstanding and was determined by applying the simplified method as allowed by SAB 107. The expected volatility for options issued in 2015 was determined using the Company’s historical data. Estimated forfeitures were assumed to be zero due to the lack of historical experience for the Company. On August 10, 2015 the Company awarded a total of 1,215,697 stock options to officers and directors.

The Company estimated the grant date fair value of options awarded in 2015 using Black-Scholes Option-Pricing model with the following assumptions:

	2015 Assumptions
Risk-free interest rate	0.51	%
Expected option life (years)	1.3
Expected stock price volatility	18.35	%
Dividend yield	1.33	%

The Company recognized $280,000 of stock-based compensation expenses relating to the granting of stock options for the three months ended and nine months endedSeptember 30, 2015.

29

BANKFINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Table amounts in thousands, except share and per share data)

NOTE 7 – EQUITY INCENTIVE PLANS (continued)

A summary of the activity in the stock option plan for 2015 follows:

Stock Options	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (1)
Stock options outstanding at December 31, 2014	—	$	—		$	—
Stock options granted	1,215,697	11.99
Stock options exercised	—	—
Stock options expired	—	—
Stock options forfeited	—	—
Stock options outstanding at September 30, 2015	1,215,697	$	11.99	1.7	$	535
Stock options exercisable at September 30, 2015	303,924	$	11.99	1.7	$	134
Fully vested and expected to vest	1,215,697	$	11.99	1.7	$	535

(1) Stock option aggregate intrinsic value represents the number of shares subject to options multiplied by the difference (if positive) in the closing market price of the common stock underlying the options on the date shown and the weighted average exercise price.

The weighted average fair value of the options granted is $0.92 per option. As of September 30, 2015, there was $839,000 of total unrecognized compensation cost related to the nonvested stock options granted under the Plan. The cost is expected to be recognized ratably over the remaining three quarterly installments.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Information

Forward Looking Statements

This Quarterly Report on Form 10-Q contains, and other periodic and current reports, press releases and other public stockholder communications of BankFinancial Corporation may contain, forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. Forward-looking statements may include statements relating to our future plans, strategies and expectations, as well as our future revenues, earnings, losses, financial performance, financial condition, asset quality metrics and future prospects. Forward looking statements are generally identifiable by use of the words “believe,” “may,” “will,” “should,” “could,” “expect,” “estimate,” “intend,” “anticipate,” “project,” “plan,” or similar expressions. Forward looking statements speak only as of the date made. They are frequently based on assumptions that may or may not materialize, and are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the forward looking statements. We intend all forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for the purpose of invoking these safe harbor provisions.

Factors that could cause actual results to differ materially from the results anticipated or projected and which could materially and adversely affect our operating results, financial condition or future prospects include, but are not limited to: (i) less than anticipated loan growth due to intense competition for high quality loans and leases, particularly in terms of pricing and credit underwriting, or a dearth of borrowers who meet our underwriting standards; (ii) the impact of re-pricing and competitors’ pricing initiatives on loan and deposit products; (iii) interest rate movements and their impact on the economy, customer behavior and our net interest margin; (iv) adverse economic conditions in general and in the Chicago metropolitan area in particular that could result in increased delinquencies in our loan portfolio or a decline in the value of our investment securities and the collateral for our loans; (v) declines in real estate values that adversely impact the value of our loan collateral, Other Real Estate Owned ("OREO"), asset dispositions and the level of borrower equity in their investments; (vi) borrowers that experience legal or financial difficulties that we do not currently foresee; (vii) results of supervisory monitoring or examinations by regulatory authorities, including the possibility that a regulatory authority could, among other things, require us to increase our allowance for loan losses or adversely change our loan classifications, write-down assets, reduce credit concentrations or maintain specific capital levels; (viii) changes, disruptions or

30

illiquidity in national or global financial markets; (ix) the credit risks of lending activities, including risks that could cause changes in the level and direction of loan delinquencies and charge-offs or changes in estimates relating to the computation of our allowance for loan losses; (x) monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; (xi) factors affecting our ability to access deposits or cost-effective funding, and the impact of competitors' pricing initiatives on our deposit products; (xii) the impact of new legislation or regulatory changes, including the Dodd-Frank Act and Basel III, on our products, services, operations and operating expenses; (xiii) higher federal deposit insurance premiums; (xiv) higher than expected overhead, infrastructure and compliance costs; (xv) changes in accounting principles, policies or guidelines; and (xvi) privacy and cybersecurity risks.

These risks and uncertainties, as well as the Risk Factors set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We do not undertake any obligation to update any forward-looking statement in the future, or to reflect circumstances and events that occur after the date on which the forward-looking statement was made.

Critical Accounting Policies

Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. We believe that the most critical accounting policies upon which our financial condition and results of operation depend, and which involve the most complex subjective decisions or assessments, are included in the discussion entitled “Critical Accounting Policies” in Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations,” in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and all amendments thereto, as filed with the Securities and Exchange Commission.

Overview

Total loans increased modestly due to stronger originations in commercial and industrial loans, partially offset by reduced originations of multi-family loans and commercial leases, as well as loan repayments that resulted in further improvements in our asset quality. Competitive factors continue to intensify in all loan segments. We are encouraged by an increase in loan opportunities in our commercial-related loan segments, but it is becoming more difficult to predict the quantity of new loan originations due to the various competitive factors we encounter. Nevertheless, the combination of our existing loan prospects and continuing marketing efforts provide us reason to believe that our commercial-related loan originations may achieve more meaningful net loan portfolio growth in the remainder of 2015 and into early 2016.

Our average yield on loans declined due to the comparatively lower yields on the floating-rate commercial and industrial loan portfolio, the continued impact of loan renewals at reduced market yields, and loan prepayments on higher-yield loans and leases. Our net interest margin declined principally due to lower yields on our loan portfolio, partially offset by improved yields in the investment securities portfolio and a slightly reduced cost of funds. Non-interest income increased due primarily to continued higher deposit-account related income. We continued to reduce our core noninterest expense consistent with our expectations for 2015.

Our ratio of nonperforming loans to total loans was 0.57% and our ratio of non-performing assets to total assets was 0.80% at September 30, 2015. Non-performing asset expense increased in the third quarter due in part to collection expenses and due in part to a seasonally higher volume of updated valuations on non-performing assets. As we reduce non-performing assets and non-performing asset expense, we expect to redeploy these resources into additional commercial-related loan originations capacity during the remainder of 2015 and early 2016.

31

SELECTED FINANCIAL DATA

The following summary information is derived from the consolidated financial statements of the Company. For additional information, reference is made to the Consolidated Financial Statements of the Company and related notes included elsewhere in this Quarterly Report.

	September 30, 2015		December 31, 2014		Change
	(Dollars in thousands)
Selected Financial Condition Data:
Total assets	$	1,431,423	$	1,465,410	$	(33,987	)
Loans, net	1,162,298		1,172,356		(10,058		)
Securities, at fair value	104,242		121,174		(16,932		)
Core deposit intangible	1,441		1,855		(414		)
Deposits	1,181,534		1,211,713		(30,179		)
Borrowings	18,048		12,921		5,127
Equity	213,074		216,121		(3,047		)

	Three Months Ended September 30,									Nine Months Ended September 30,
	2015			2014			Change			2015			2014		Change
	(Dollars in thousands)
Selected Operating Data:
Interest and dividend income	$	12,147		$	12,368		$	(221	)	$	36,551		$	36,936	$	(385	)
Interest expense	699			746			(47		)	2,076			2,332		(256		)
Net interest income	11,448			11,622			(174		)	34,475			34,604		(129		)
Provision for (recovery of) loan losses	(956		)	(1,413		)	457			(2,168		)	20		(2,188		)
Net interest income after provision for (recovery of) loan losses	12,404			13,035			(631		)	36,643			34,584		2,059
Noninterest income	1,709			1,748			(39		)	4,934			4,940		(6		)
Noninterest expense	10,232			11,157			(925		)	30,776			33,510		(2,734		)
Income before income tax expense	3,881			3,626			255			10,801			6,014		4,787
Income tax expense	1,532			36			1,496			4,242			78		4,164
Net income	$	2,349		$	3,590		$	(1,241	)	$	6,559		$	5,936	$	623

32

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Selected Financial Ratios and Other Data:
Performance Ratios:
Return on assets (ratio of net income to average total assets) (1)	0.65		%	1.01		%	0.61		%	0.55		%
Return on equity (ratio of net income to average equity) (1)	4.41			7.98			4.06			4.43
Average equity to average assets	14.85			12.60			14.92			12.42
Net interest rate spread (1) (2)	3.33			3.35			3.37			3.34
Net interest margin (1) (3)	3.40			3.40			3.43			3.39
Efficiency ratio (4)	77.77			83.45			78.09			84.74
Noninterest expense to average total assets (1)	2.85			3.13			2.84			3.11
Average interest-earning assets to average interest-bearing liabilities	134.89			123.36			130.22			122.61
Dividends declared per share	$	0.08		$	0.04		$	0.16		$	0.05
Dividend payout ratio	69.82		%	23.50		%	50.74		%	17.78		%

	At September 30, 2015		At December 31, 2014
Asset Quality Ratios:
Nonperforming assets to total assets (5)	0.80	%	1.27	%
Nonperforming loans to total loans	0.57		1.03
Allowance for loan losses to nonperforming loans	150.71		98.17
Allowance for loan losses to total loans	0.86		1.01
Capital Ratios:
Equity to total assets at end of period	14.89	%	14.75	%
Tier 1 leverage ratio (Bank only)	11.27	%	11.45	%
Other Data:
Number of full-service offices	19		19
Employees (full-time equivalents)	264		269

(1) Ratios annualized.

(2) The net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities for the period.

(3) The net interest margin represents net interest income divided by average total interest-earning assets for the period.

(4) The efficiency ratio represents noninterest expense, divided by the sum of net interest income and noninterest income.

(5) Nonperforming assets include nonperforming loans and other real estate owned.

Comparison of Financial Condition at September 30, 2015 and December 31, 2014

Total assets decreased $34.0 million, or 2.3%, to $1.431 billion at September 30, 2015, from $1.465 billion at December 31, 2014. The decrease in total assets was primarily due to decreases in securities and loans. Partially offsetting this decrease was a $1.9 million, or 3.2%, increase in cash and cash equivalents to $61.5 million at September 30, 2015, from $59.6 million at December 31, 2014.

Loans decreased $10.1 million, or 0.9%, to $1.162 billion at September 30, 2015, from $1.172 billion at December 31, 2014. At September 30, 2015, our loan portfolio included $867.0 million of real estate loans, which represented 74.1% of the loan portfolio. The Bank’s primary lending area consists of the counties where our branch offices are located, and contiguous counties in the State of Illinois. We derive the most significant portion of our revenues from these geographic areas. We also engage in multi-familylending activities in carefully selected metropolitan areas outside our primary lending area and engage in certain types of commercial lending and leasing activities on a nationwide basis. At September 30, 2015, $676.2 million, or 78.0%, of our real estate loans

33

were in Illinois, while $76.6 million, or 8.8%, were in Texas, $53.2 million, or 6.1%, were in Colorado, and $21.6 million, or 2.5%, were in Minnesota. This information reflects the location of the collateral for these real estate loans, but does not necessarily reflect the location of the borrower.

Total liabilities decreased by $30.9 million, or 2.5%, to $1.218 billion at September 30, 2015, from $1.249 billion at December 31, 2014, primarily due to decreases in money market and interest-bearing demand accounts and certificates of deposits. These decreases were partially offset by an increase in non-interest bearing demand accounts.

Total deposits decreased $30.2 million, or 2.5%, to $1.182 billion at September 30, 2015, from $1.212 billion at December 31, 2014. Noninterest-bearing demand deposits increased $99.1 million, or 73.9%, to $233.2 million at September 30, 2015, from $134.1 million at December 31, 2014. Money market and interest-bearing NOW accounts decreased $117.3 million, or 17.0%, to $572.9 million at September 30, 2015, from $690.2 million at December 31, 2014. Certificates of deposit decreased $10.0 million, or 4.3%, to $222.9 million at September 30, 2015, from $232.9 million at December 31, 2014. Core deposits (savings, money market, noninterest-bearing demand and NOW accounts) were 81.1% and 80.8% of total deposits at September 30, 2015 and December 31, 2014, respectively. The volatility noted in overall transaction account balances is consistent with seasonal fluctuations observed in previous years.

The changes in the balances of noninterest bearing demand deposits and money market and interest-bearing NOW accounts were due in substantial part to efforts we undertook through the third quarter of 2015 to simplify our deposit account options.  As part of this process, we discontinued several older account types and converted the discontinued account types to current account types.  During the third quarter of 2015, we converted approximately 9,400 older account types, totaling $80 million, to current account types.  Approximately 48% of the converted accounts, or 4,500 accounts, were interest-bearing demand accounts that were converted to non-interest bearing demand accounts.  Approximately $45 million of the accounts that were converted to non-interest bearing account types have balances that could migrate to interest-bearing accounts if interest rates were to increase materially; accordingly, we have incorporated the possibility of such migration into our various interest-rate risk management scenarios.

Borrowings increased $5.1 million to $18.0 million at September 30, 2015, from $12.9 million at December 31, 2014 due to a $5.0 million increase in outstanding FHLBC advances to $15.0 million at September 30, 2015, from $10.0 million at December 31, 2014.

Total stockholders’ equity was $213.1 million at September 30, 2015, compared to $216.1 million at December 31, 2014. The decrease in total stockholders’ equity was primarily due to the combined impact of our repurchase of 600,000 shares of our common stock during the nine months endedSeptember 30, 2015 at a total cost of $7.4 million, and our declaration and payment of cash dividends totaling $3.3 million during this period. These items were partially offset by net income of $6.6 million that we recorded for the nine months endedSeptember 30, 2015. The unallocated shares of common stock that our ESOP owns were reflected as a $9.5 million reduction to stockholders’ equity at September 30, 2015, compared to a $10.3 million reduction at December 31, 2014.

Operating results for the three months ended September 30, 2015 and 2014

Net Income.We had net income of $2.3 million and $3.6 million for the three months endedSeptember 30, 2015 and 2014, respectively. Earnings per basic and fully diluted share of common stock were $0.12 for the three months endedSeptember 30, 2015, compared to $0.17 for the three months endedSeptember 30, 2014.

Net Interest Income. Net interest income was $11.4 million for the three months endedSeptember 30, 2015, compared to $11.6 million for the three months endedSeptember 30, 2014. The decrease in net interest income reflected a $221,000, or 1.8%, decrease in interest income, partially offset by a $47,000, or 6.3%, decrease in interest expense.

The decrease in net interest income was primarily attributable to decreases in the yield on interest-earning assets and net average interest-earning assets. Total average interest-earning assets decreased $19.0 million, or 1.40%, to $1.336 billion for the three months endedSeptember 30, 2015, from $1.355 billion for the same period in 2014. Our net interest rate spread decreased by two basis point to 3.33% for the three months endedSeptember 30, 2015, from 3.35% for the same period in 2014. Our net interest margin remained at 3.40% for the three months endedSeptember 30, 2015 and 2014. The yield on interest-earning assets decreased one basis point to 3.61% for the three months endedSeptember 30, 2015, from 3.62% for the same period in 2014, and the cost of interest-bearing liabilities increased one basis point to 0.28% for the three months endedSeptember 30, 2015, from 0.27% for the same period in 2014.

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Average Balance Sheets

The following table sets forth average balance sheets, average yields and costs, and certain other information. No tax-equivalent yield adjustments were made, as the effect of these adjustments would not be material. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and expenses, discounts and premiums and purchase accounting adjustments that are amortized or accreted to interest income or expense.

	For the Three Months Ended September 30,
	2015							2014
	Average Outstanding Balance			Interest		Yield/Rate(1)		Average Outstanding Balance			Interest		Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans	$	1,164,251		$	11,792	4.02	%	$	1,127,735		$	11,983	4.22	%
Securities	102,578			267		1.03		114,805			283		0.98
Stock in FHLBC	6,257			7		0.44		6,257			8		0.51
Other	63,326			81		0.51		106,639			94		0.35
Total interest-earning assets	1,336,412			12,147		3.61		1,355,436			12,368		3.62
Noninterest-earning assets	98,337							72,114
Total assets	$	1,434,749						$	1,427,550
Interest-bearing liabilities:
Savings deposits	$	154,413		41		0.11		$	153,256		40		0.10
Money market accounts	333,613			261		0.31		348,410			281		0.32
NOW accounts	270,175			92		0.14		346,204			89		0.10
Certificates of deposit	223,432			301		0.53		247,672			334		0.54
Total deposits	981,633			695		0.28		1,095,542			744		0.27
Borrowings	9,100			4		0.17		3,185			2		0.25
Total interest-bearing liabilities	990,733			699		0.28		1,098,727			746		0.27
Noninterest-bearing deposits	211,438							131,626
Noninterest-bearing liabilities	19,517							17,268
Total liabilities	1,221,688							1,247,621
Equity	213,061							179,929
Total liabilities and equity	$	1,434,749						$	1,427,550
Net interest income				$	11,448						$	11,622
Net interest rate spread (2)						3.33	%						3.35	%
Net interest-earning assets (3)	$	345,679						$	256,709
Net interest margin (4)						3.40	%						3.40	%
Ratio of interest-earning assets to interest-bearing liabilities	134.89		%					123.36		%

(1) Annualized.

(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(3) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

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Provision for (Recovery of) Loan Losses

We establish provisions for loan losses, which are charged to operations in order to maintain the allowance for loan losses at a level we consider necessary to absorb probable incurred credit losses in the loan portfolio. In determining the level of the allowance for loan losses, we consider past and current loss experience, evaluations of real estate collateral, current economic conditions, volume and type of lending, adverse situations that may affect a borrower’s ability to repay a loan and the levels of nonperforming and other classified loans. The amount of the allowance is based on estimates and the ultimate losses may vary from such estimates as more information becomes available or events change. We assess the allowance for loan losses on a quarterly basis and make provisions for loan losses in order to maintain the allowance.

We had a recovery of loan losses of $956,000 for the three months ended September 30, 2015, compared to a recovery of $1.4 million for the same period in 2014. The provision for or recovery of loan losses is a function of the allowance for loan loss methodology that we use to determine the appropriate level of the allowance for inherent loan losses after net charge-offs have been deducted. The portion of the allowance for loan losses attributable to loans collectively evaluated for impairment decreased $750,000, or 7.0%, to $10.0 million at September 30, 2015, from $10.7 million at June 30, 2015.The reserve established for loans individually evaluated for impairment increased $21,000, or 32.3%, to $86,000 at September 30, 2015, from $65,000 at June 30, 2015. Net recoveries were $227,000 for the three months ended September 30, 2015. The allowance for loan losses as a percentage of nonperforming loans was 150.71% at September 30, 2015, compared to 124.86% at June 30, 2015.

A loan balance is classified as a loss and charged-off when it is confirmed that there is no readily apparent source of repayment for the portion of the loan that is classified as loss. Confirmation can occur upon the receipt of updated third-party appraisal valuation information indicating that there is a low probability of repayment upon sale of the collateral, the final disposition of collateral where the net proceeds are insufficient to pay the loan balance in full, our failure to obtain possession of certain consumer-loan collateral within certain time limits specified by applicable federal regulations, the conclusion of legal proceedings where the borrower’s obligation to repay is legally discharged (such as a Chapter 7 bankruptcy proceeding), or when it appears that further formal collection procedures are not likely to result in net proceeds in excess of the costs to collect.

Noninterest Income

	Three Months Ended September 30,
	2015			2014			Change
	(Dollars in thousands)
Deposit service charges and fees	$	562		$	527		$	35
Other fee income	502			563			(61		)
Insurance commissions and annuities income	68			106			(38		)
Gain on sale of loans, net	37			39			(2		)
Loan servicing fees	85			102			(17		)
Amortization of servicing assets	(35		)	(36		)	1
Recovery (impairment) of servicing assets	(15		)	4			(19		)
Earnings on bank owned life insurance	48			57			(9		)
Trust income	172			171			1
Other	285			215			70
Total noninterest income	$	1,709		$	1,748		$	(39	)

Noninterest income totaled $1.7 million for the three months ended September 30, 2015 and for the three months ended September 30, 2014. Deposit service charges and fees increased $35,000 and other fee income decreased $61,000 for the three months ended September 30, 2015. Noninterest income for the three months ended September 30, 2015 included a $37,000 gain on sale of loans, compared to a $39,000 gain on sale of loans that was recorded for the same period in 2014. Earnings on bank owned life insurance decreased $9,000 for the three months ended September 30, 2015 to $48,000, from $57,000 for the same period in 2014.

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Noninterest Expense

	Three Months Ended September 30,
	2015			2014		Change
	(Dollars in thousands)
Compensation and benefits	$	5,329		$	5,492	$	(163	)
Office occupancy and equipment	1,537			1,687		(150		)
Advertising and public relations	212			272		(60		)
Information technology	686			674		12
Supplies, telephone and postage	393			394		(1		)
Amortization of intangibles	136			143		(7		)
Nonperforming asset management	244			418		(174		)
Gain (loss) on sale other real estate owned	(11		)	52		(63		)
Valuation adjustments of other real estate owned	231			315		(84		)
Operations of other real estate owned	114			127		(13		)
FDIC insurance premiums	202			208		(6		)
Other	1,159			1,375		(216		)
Total noninterest expense	$	10,232		$	11,157	$	(925	)

Noninterest expense decreased by $925,000, or 8.3%, to $10.2 million for the three months ended September 30, 2015, from $11.2 million for the same period in 2014, due in substantial part to decreases in compensation and benefits expense, and expense for nonperforming asset management and other real estate owned. Total compensation and benefit expense for the three months ended September 30, 2015 decreased $163,000, or 3.0%, primarily due to a reduction in full-time equivalent employees to 264 at September 30, 2015, from 270 at September 30, 2014, which was partially offset by $280,000 in stock option expense for the three months ended September 30, 2015.

Nonperforming asset management expense decreased $174,000 or 41.6%, to $244,000 for the three months ended September 30, 2015, compared to $418,000 for the same period in 2014. OREO expense decreased $160,000, or 32.4%, to $334,000 for the three months ended September 30, 2015, from $494,000 for the three months ended September 30, 2014. OREO expense for the three months ended September 30, 2015 included gain on sale of OREO $11,000, compared to a loss of $52,000 for the three months ended September 30, 2014.

Income Taxes

For the three months ended September 30, 2015, we recorded income tax expense of $1.5 million, compared to $36,000 for the three months ended September 30, 2014. Our effective tax rate for the three months ended September 30, 2015 was 39.5%. For the three months ended September 30, 2014, income tax expense consisted solely of expense for state taxes.

Operating results for the nine months endedSeptember 30, 2015 and 2014

Net Income.We had net income of $6.6 million for the nine months endedSeptember 30, 2015, compared to $5.9 million for the nine months endedSeptember 30, 2014. Our earnings per basic and fully diluted share of common stock were $0.33 for the nine months endedSeptember 30, 2015, and $0.29 per basic and fully diluted share for the same period in 2014.

Net Interest Income. Net interest income was $34.5 million for the nine months endedSeptember 30, 2015, compared to $34.6 million for the nine months endedSeptember 30, 2014. A $385,000 decrease in interest income was partially offset by a $256,000 decrease in interest expense.

Total average interest-earning assets decreased $21.7 million, or 1.6%, to $1.343 billion for the nine months endedSeptember 30, 2015, from $1.364 billion for the same period in 2014. Our net interest rate spread increased by three basis points to 3.37% for the nine months endedSeptember 30, 2015, from 3.34% for the same period in 2014. Our net interest margin increased by four basis points to 3.43% for the nine months endedSeptember 30, 2015, from 3.39% for the same period in 2014. The increase in the net interest spread and net interest margin was primarily a result of increased yield on interest-earning assets, which was partially offset by a lower cost of funds. The yield on interest-earning assets increased two basis points to 3.64% for the nine

37

months endedSeptember 30, 2015, from 3.62% for the same period in 2014, and the cost of interest-bearing liabilities decreased one basis point to 0.27% for the nine months endedSeptember 30, 2015, from 0.28% for the same period in 2014.

Average Balance Sheets

The following table sets forth average balance sheets, average yields and costs, and certain other information. No tax-equivalent yield adjustments were made, as the effect of these adjustments would not be material. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances, but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and expenses, discounts and premiums, purchase accounting adjustments that are amortized or accreted to interest income or expense.

	For the Nine Months Ended September 30,
	2015							2014
	Average Outstanding Balance			Interest		Yield/Rate(1)		Average Outstanding Balance			Interest		Yield/Rate (1)
	(Dollars in thousands)
Interest-earning assets:
Loans	$	1,159,592		$	35,451	4.09	%	$	1,120,523		$	35,767	4.27	%
Securities	110,674			851		1.03		114,194			866		1.01
Stock in FHLBC	6,257			23		0.49		6,184			20		0.43
Other	66,110			226		0.46		123,406			283		0.31
Total interest-earning assets	1,342,633			36,551		3.64		1,364,307			36,936		3.62
Noninterest-earning assets	101,597							73,946
Total assets	$	1,444,230						$	1,438,253
Interest-bearing liabilities:
Savings deposits	$	156,189		122		0.10		$	153,818		118		0.10
Money market accounts	337,828			797		0.32		349,146			842		0.32
NOW accounts	304,020			270		0.12		349,116			265		0.10
Certificates of deposit	227,905			879		0.52		257,799			1,102		0.57
Total deposits	1,025,942			2,068		0.27		1,109,879			2,327		0.28
Borrowings	5,070			8		0.21		2,808			5		0.24
Total interest-bearing liabilities	1,031,012			2,076		0.27		1,112,687			2,332		0.28
Noninterest-bearing deposits	176,112							128,422
Noninterest-bearing liabilities	21,582							18,555
Total liabilities	1,228,706							1,259,664
Equity	215,524							178,589
Total liabilities and equity	$	1,444,230						$	1,438,253
Net interest income				$	34,475						$	34,604
Net interest rate spread (2)						3.37	%						3.34	%
Net interest-earning assets (3)	$	311,621						$	251,620
Net interest margin (4)						3.43	%						3.39	%
Ratio of interest-earning assets to interest-bearing liabilities	130.22		%					122.61		%

(1) Annualized.

(2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(3) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

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Provision for (Recovery of) Loan Losses

We recorded a recovery of loan losses of $2.2 million for the nine months endedSeptember 30, 2015, compared to a provision for loan losses of $20,000 for the same period in 2014. The portion of the allowance for loan losses attributable to loans collectively evaluated for impairment decreased $1.5 million, or 13.2%, to $10.0 million at September 30, 2015, from $11.5 million at December 31, 2014. The reserve established for loans individually evaluated for impairment decreased $384,000 for the nine months endedSeptember 30, 2015. Net recoveries of $259,000 were recorded for the nine months endedSeptember 30, 2015, compared to charge-offs of $1.1 million for the nine months endedSeptember 30, 2014. The allowance for loan losses as a percentage of nonperforming loans was 150.71% at September 30, 2015, compared to 98.17% at December 31, 2014.

Noninterest Income

	Nine Months Ended September 30,
	2015			2014			Change
	(Dollars in thousands)
Deposit service charges and fees	$	1,493		$	1,438		$	55
Other fee income	1,638			1,677			(39		)
Insurance commissions and annuities income	217			279			(62		)
Gain on sale of loans, net	92			107			(15		)
Loss on sales of securities	—			(7		)	7
Gain (loss) on disposition of premises and equipment	(1		)	5			(6		)
Loan servicing fees	271			310			(39		)
Amortization of servicing assets	(105		)	(106		)	1
Impairment of servicing assets	(2		)	(6		)	4
Earnings on bank owned life insurance	142			182			(40		)
Trust income	529			505			24
Other	660			556			104
Total noninterest income	$	4,934		$	4,940		$	(6	)

Noninterest income was $4.9 million for the nine months endedSeptember 30, 2015 and 2014. Deposit service charges and fees increased $55,000 and other fee income decreased $39,000 for the nine months endedSeptember 30, 2015. Noninterest income for the nine months endedSeptember 30, 2015 included a $92,000 gain on sale of loans, compared to a $107,000 gain on sale of loans that was recorded for the same period in 2014. Earnings on bank owned life insurance decreased $40,000 for the nine months endedSeptember 30, 2015 to $142,000, from $182,000 for the nine months endedSeptember 30, 2014.

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Noninterest Expense

	Nine Months Ended September 30,
	2015			2014			Change
	(Dollars in thousands)
Compensation and benefits	$	16,188		$	17,046		$	(858	)
Office occupancy and equipment	4,902			5,227			(325		)
Advertising and public relations	783			741			42
Information technology	1,982			2,004			(22		)
Supplies, telephone and postage	1,189			1,169			20
Amortization of intangibles	414			435			(21		)
Nonperforming asset management	442			619			(177		)
Gain on sale other real estate owned	(91		)	(40		)	(51		)
Valuation adjustments of other real estate owned	467			392			75
Operations of other real estate owned	404			808			(404		)
FDIC insurance premiums	699			1,157			(458		)
Other	3,397			3,952			(555		)
Total noninterest expense	$	30,776		$	33,510		$	(2,734	)

Noninterest expense decreased by $2.7 million, or 8.2%, to $30.8 million for the nine months endedSeptember 30, 2015, from $33.5 million for the nine months endedSeptember 30, 2014. Total compensation and benefit expense for the nine months ended September 30, 2015 decreased $858,000, or 5.0%, primarily due to a reduction in full-time equivalent employees to 264 at September 30, 2015, from 269 at December 31, 2014 and 270 at September 30, 2014, which was partially offset by $280,000 in stock option expense for the nine months endedSeptember 30, 2015. Noninterest expense for the nine months endedSeptember 30, 2015 included $1.2 million of nonperforming asset management and OREO expense, compared to $1.8 million of nonperforming asset management and OREO expense for the same period in 2014. Nonperforming asset management and OREO expenses decreased $557,000, or 31.3% for the nine months endedSeptember 30, 2015, primarily due to a decline in nonperforming assets and OREO properties, a decline in expenses relating to resolutions and accelerated dispositions of nonperforming assets, and a $200,000 reimbursement that we received for legal, receivership and other expenses in connection with the final resolution of certain loans. Noninterest expense for the nine months endedSeptember 30, 2015 included a $467,000 valuation adjustment to OREO properties, compared to a $392,000 valuation adjustment to OREO properties for the same period in 2014. The OREO valuation adjustments were based on updated appraisals. OREO expense decreased $404,000, or 50.0%, to $404,000 for the nine months endedSeptember 30, 2015, compared to $808,000 for the nine months endedSeptember 30, 2014. OREO expense for the nine months endedSeptember 30, 2014 included a $140,000 litigation settlement payment concerning a purchased impaired OREO property.

Income Taxes

For the nine months endedSeptember 30, 2015, we recorded income tax expense of $4.2 million, compared to $78,000 for the nine months endedSeptember 30, 2014. Our effective tax rate for the nine months endedSeptember 30, 2015 was 39.3%. For the nine months endedSeptember 30, 2014, income tax expense consisted solely of expense for state taxes.

Nonperforming Loans and Assets

We review loans on a regular basis, and generally place loans on nonaccrual status when either principal or interest is 90 days or more past due. In addition, the Company places loans on nonaccrual status when we do not expect to receive full payment of interest or principal. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance before the loan is eligible to return to accrual status. We may have loans classified as 90 days or more delinquent and still accruing. Generally, we do not utilize this category of loan classification unless: (1) the loan is repaid in full shortly after the period end date; (2) the loan is well secured and there are no asserted or pending legal barriers to its collection; or (3) the borrower has remitted all scheduled payments and is otherwise in substantial compliance with the terms of the loan, but the processing of loan payments actually

40

received or the renewal of the loan has not occurred for administrative reasons. At September 30, 2015, we had no loans in this category.

We typically obtain new third–party appraisals or collateral valuations when we place a loan on nonaccrual status, conduct impairment testing or conduct a TDR analysis unless the existing valuation information for the collateral is sufficiently current to comply with the requirements of our Appraisal and Collateral Valuation Policy (“ACV Policy”). We also obtain new third–party appraisals or collateral valuations when the judicial foreclosure process concludes with respect to real estate collateral, and when we otherwise acquire actual or constructive title to real estate collateral. In addition to third–party appraisals, we use updated valuation information based on Multiple Listing Service data, broker opinions of value, actual sales prices of similar assets sold by us and approved sales prices in response to offers to purchase similar assets owned by us to provide interim valuation information for consolidated financial statement and management purposes. Our ACV Policy establishes the maximum useful life of a real estate appraisal at 18 months. Because appraisals and updated valuations utilize historical or “ask–side” data in reaching valuation conclusions, the appraised or updated valuation may or may not reflect the actual sales price that we will receive at the time of sale.

Real estate appraisals may include up to three approaches to value: the sales comparison approach, the income approach (for income-producing property) and the cost approach. Not all appraisals utilize all three approaches. Depending on the nature of the collateral and market conditions, we may emphasize one approach over another in determining the fair value of real estate collateral. Appraisals may also contain different estimates of value based on the level of occupancy or planned future improvements. “As-is” valuations represent an estimate of value based on current market conditions with no changes to the use or condition of the real estate collateral. “As-stabilized” or “as-completed” valuations assume the real estate collateral will be improved to a stated standard or achieve its highest and best use in terms of occupancy. “As-stabilized” or “as-completed” valuations may be subject to a present value adjustment for market conditions or the schedule of improvements.

As part of the asset classification process, we develop an exit strategy for real estate collateral or OREO by assessing overall market conditions, the current use and condition of the asset, and its highest and best use. For most income–producing real estate, we believe that investors value most highly a stable income stream from the asset; consequently, we perform a comparative evaluation to determine whether conducting a sale on an “as–is”, “as–stabilized” or “as–completed” basis is most likely to produce the highest net realizable value. If we determine that the “as–stabilized” or “as–completed” basis is appropriate, we then complete the necessary improvements or tenant stabilization tasks, with the applicable time value discount and improvement expenses incorporated into our estimates of the expected costs to sell. As of September 30, 2015, substantially all impaired real estate loan collateral and OREO were valued on an “as–is” basis.

Estimates of the net realizable value of real estate collateral also include a deduction for the expected costs to sell the collateral or such other deductions from the cash flows resulting from the operation and liquidation of the asset as are appropriate. For most real estate collateral subject to the judicial foreclosure process, we generally apply a 10.0% deduction to the value of the asset to determine the expected costs to sell the asset. This estimate includes one year of real estate taxes, sales commissions and miscellaneous repair and closing costs. If we receive a purchase offer that requires unbudgeted repairs, or if the expected resolution period for the asset exceeds one year, we then include, on a case-by-case basis, the costs of the additional real estate taxes and repairs and any other material holding costs in the expected costs to sell the collateral. For OREO, we generally apply a 7.0% deduction to determine the expected costs to sell, as expenses for real estate taxes and repairs are expensed when incurred.

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Nonperforming Assets Summary

The following table below sets forth the amounts and categories of our nonperforming loans and nonperforming assets.

	September 30, 2015			June 30, 2015			December 31, 2014			Quarter Change			Nine Month Change
	(Dollars in thousands)
Nonaccrual loans:
One-to-four family residential	$	2,952		$	3,468		$	4,408		$	(516	)	$	(1,456	)
Multi-family mortgage	1,399			2,382			4,481			(983		)	(3,082		)
Nonresidential real estate	2,263			2,732			3,245			(469		)	(982		)
Commercial	75			75			76			—			(1		)
Consumer	—			1			3			(1		)	(3		)
	6,689			8,658			12,213			(1,969		)	(5,524		)
Other real estate owned:
One-to-four family residential	325			471			806			(146		)	(481		)
Multi-family mortgage	1,474			2,018			2,307			(544		)	(833		)
Nonresidential real estate	1,289			1,240			885			49			404
Land	51			51			135			—			(84		)
	3,139			3,780			4,133			(641		)	(994		)
Nonperforming assets (excluding purchased other real estate owned)	9,828			12,438			16,346			(2,610		)	(6,518		)
Purchased other real estate owned:
One-to-four family residential	—			—			457			—			(457		)
Land	1,670			1,759			1,768			(89		)	(98		)
	1,670			1,759			2,225			(89		)	(555		)
Total nonperforming assets	$	11,498		$	14,197		$	18,571		$	(2,699	)	$	(7,073	)
Ratios:
Nonperforming loans to total loans	0.57		%	0.74		%	1.03		%
Nonperforming assets to total assets	0.80			0.99			1.27
Nonperforming assets to total assets(1)	0.69			0.86			1.11

(1) These asset quality ratios exclude purchased other real estate owned resulting from the Downers Grove National Bank acquisition.

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Nonperforming Assets

Nonperforming assets totaled $11.5 million at September 30, 2015, $14.2 million at June 30, 2015, and $18.6 million at December 31, 2014. Nonperforming assets decreased $2.7 million and $7.1 million, respectively, for the three and nine months endedSeptember 30, 2015. Although we experience occasional isolated instances of new non-accrual loans, we believe that continuing our aggressive resolution posture will maintain the trends favoring very strong asset quality.

We assigned a Special Mention risk rating to loans to a single commercial borrower with a total combined balance of $16.5 million collateralized primarily with real estate assets with a recently appraised value of approximately $25.3 million as of September 30, 2015. The borrower operates a multi-store retail business in the Chicago metropolitan area. To maintain competitiveness and profitability, the borrower relocated or closed several underperforming stores and a warehouse, and as a result, owns five real estate parcels that are now non-essential to the borrower’s core business. Some parcels are now fully or partially leased, but expenses associated with the discontinued operations have adversely impacted the borrower’s operating results as presented in the audited consolidated financial statements that we receive from the borrower annually, as well as the borrower’s cash flow. We are monitoring the borrower’s financial performance and the status of the process the borrower has initiated to sell certain of the non-core real estate assets. If the borrower manages the cash flow from its core business appropriately through the seasonal fluctuations that are inherent to its industry and successfully implements its non-core asset disposition plans, we believe that the borrower’s financial performance can improve significantly. However, further adverse developments in the core business or material delays in the disposition of non-core assets may require us to take further action.

We continue to experience modest quantities of defaults on residential real estate loans principally due either to the borrower’s personal financial condition or deteriorated collateral value.

Other Real Estate Owned

Real estate that is acquired through foreclosure or a deed in lieu of foreclosure is classified as OREO until it is sold. When real estate is acquired through foreclosure or by deed in lieu of foreclosure, it is recorded at its fair value, less the estimated costs of disposal. If the fair value of the property is less than the loan balance, the difference is charged against the allowance for loan losses.

The following tables represent the roll-forward of OREO and the composition of OREO properties:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
	(Dollars in thousands)
Beginning balance	$	5,539		$	7,704		$	6,358		$	6,306
New foreclosed properties	147			376			1,314			3,836
Payments received	—			—			—			(10		)
Valuation adjustments	(231		)	(315		)	(467		)	(392		)
Gain (loss) on sale of other real estate owned	11			(52		)	91			40
Proceeds from sales of other real estate owned	(657		)	(1,723		)	(2,487		)	(3,790		)
Ending balance	$	4,809		$	5,990		$	4,809		$	5,990

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	September 30, 2015		December 31, 2014
	(Dollars in thousands)
One-to-four family residential	$	325	$	806
Multi-family mortgage	1,474		2,307
Nonresidential real estate	1,289		885
Land	51		135
	3,139		4,133
Acquired other real estate owned:
One-to-four family residential	—		457
Land	1,670		1,768
	1,670		2,225
Total other real estate owned	$	4,809	$	6,358

Liquidity and Capital Resources

Liquidity. The overall objective of our liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities. We manage liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.

Our primary sources of funds are deposits, principal and interest payments on loans and securities, and, to a lesser extent, wholesale borrowings, the proceeds from maturing securities and short-term investments, and the proceeds from the sales of loans and securities and lease payments. The scheduled amortization of loans and securities, as well as proceeds from borrowings, are predictable sources of funds. Other funding sources, however, such as deposit inflows, mortgage prepayments and mortgage loan sales are greatly influenced by market interest rates, economic conditions and competition. We anticipate that we will have sufficient funds available to meet current loan commitments and lines of credit and maturing certificates of deposit that are not renewed or extended. We generally remain fully invested and utilize additional sources of funds through FHLBC advances. We had outstanding FHLBC advances of $15 million at September 30, 2015.

The liquidity needs of the Company on an unconsolidated basis consist primarily of operating expenses, dividends to stockholders and stock repurchases. The primary source of liquidity for the Company as of September 30, 2015 was $16.6 million in cash and cash equivalents, and potential future cash dividends from the Bank.

As of September 30, 2015, we were not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on our liquidity. As of September 30, 2015, we had no other material commitments for capital expenditures.

Capital Management

Capital Management - Bank. The overall objectives of our capital management are to ensure the availability of sufficient capital to support loan, deposit and other asset and liability growth opportunities and to maintain capital to absorb unforeseen losses or write-downs that are inherent in the business risks associated with the banking industry. We seek to balance the need for higher capital levels to address such unforeseen risks and the goal to achieve an adequate return on the capital invested by our stockholders.

We are subject to minimum risk-based capital limitations as set forth by federal banking regulations at both the consolidated Company level and the Bank level. Under the risk-based capital guidelines, different categories of assets, including certain off-balance sheet items, such as loan commitments and letters of credit, are assigned different risk weights, based generally on the perceived credit risk of the asset. These risk weights are multiplied by corresponding asset balances to determine a “risk-weighted” asset base. For purposes of the risk-based capital guidelines, total capital is defined as the sum of “Common Equity Tier 1”, “Additional Tier 1” and “Tier 2” capital elements. Common Equity Tier 1 is comprised of common stock, related surplus and

44

retained earnings. Additional Tier 1 capital includes, with certain restrictions, noncumulative perpetual preferred stock, certain grandfathered regulatory capital instruments and minority interests in consolidated subsidiaries. Tier 2 capital includes, with certain limitations, perpetual preferred stock not included in Tier 1 capital, subordinate debt, certain maturing capital instruments, and the allowance for loan and credit losses.

In March 2015, the Company implemented the Basel III capital rules that reformed the regulatory capital framework for banking institutions. The U.S. banking regulatory agencies have implemented the reforms which are designed to ensure that banks maintain strong capital positions even in the event of severe economic downturns or unforeseen losses.

Changes that affected the Company include the additional constraints on the inclusion of deferred tax assets in capital, increased risk weightings for nonperforming loans and acquisition/development loans in regulatory capital. Under the new regulations the Company elected a one-time opt-out to exclude Accumulated Other Comprehensive Income (AOCI) from regulatory capital in the first quarter of 2015.

The Company and the Bank have each adopted Regulatory Capital Plans that require the Bank to maintain a Tier 1 leverage ratio of at least 8% and a total risk-based capital ratio of at least 12%. The minimum capital ratios set forth in the Regulatory Capital Plans may be increased and other minimum capital requirements may be established if and as necessary to comply with the Basel III requirements now applicable to the Company and the Bank. In accordance with the Regulatory Capital Plans, neither the Company nor the Bank will pursue any acquisition or growth opportunity, declare any dividend or conduct any stock repurchase that would cause the Bank's total risk-based capital ratio and/or its Tier 1 leverage ratio to fall below the established minimum capital levels. In addition, the Company will continue to maintain its ability to serve as a source of financial strength to the Bank by holding at least $5.0 million of cash or liquid assets for that purpose.

The following table shows the Company' s and the Bank's capital amounts and ratios and regulatory thresholds under Basel III at September 30, 2015:

	Risk-based									Leverage
	Common Tier 1			Tier 1			Total Capital			Tier 1
Company
Regulatory capital	$	189,216		$	189,216		$	199,302		$	189,216
Well-capitalized requirement	67,818			83,468			104,335			70,575
Regulatory capital - excess	$	121,398		$	105,748		$	94,967		$	118,641
Capital	18.14		%	18.14		%	19.10		%	13.41		%
Minimum capital requirement	4.50		%	6.00		%	8.00		%	4.00		%
Well capitalized requirement (1)	6.50		%	8.00		%	10.00		%	5.00		%
Bank
Regulatory capital	159,118			159,118			169,204			159,118
Well-capitalized requirement	67,804			83,451			104,314			70,588
Regulatory capital - excess	$	91,314		$	75,667		$	64,890		$	88,530
Capital	15.25		%	15.25		%	16.22		%	11.27		%
Minimum capital requirement	4.50		%	6.00		%	8.00		%	4.00		%
Well capitalized requirement (1)	6.50		%	8.00		%	10.00		%	5.00		%

(1) The ratios for the well-capitalized requirement are only applicable to the Bank. However, the Company manages its capital position as if the requirement applies to the consolidated entity and has presented the ratios as if they also applied to the Company.

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	Consolidated Actual Ratio		BankFinancial F.S.B. Actual Ratio		Required for Capital Adequacy Purposes Pre-Basel III		To be Well-Capitalized Under Pre-Basel III Regulatory Requirements
December 31, 2014
Total capital (to risk-weighted assets)	18.31	%	16.21	%	8.00	%	10.00	%
Tier 1 (core) capital (to risk-weighted assets)	17.21		15.11		4.00		6.00
Tier 1 (core) capital (to adjusted total assets)	13.04		11.45		4.00		5.00

As of September 30, 2015, the Bank and the Company were well-capitalized with all capital ratios exceeding the well-capitalized requirement. There are no conditions or events that management believes have changed the Bank’s prompt corrective action capitalization category.

Capital Management - Company Total stockholders’ equity was $213.1 million at September 30, 2015, compared to $216.1 million at December 31, 2014. The decrease in total stockholders’ equity was primarily due to the combined impact of our repurchase of 600,000 shares of our common stock during the nine months endedSeptember 30, 2015 at a total cost of $7.4 million, and our declaration and payment of cash dividends totaling $3.3 million during this period. These items were partially offset by net income of $6.6 million that we recorded for the nine months endedSeptember 30, 2015. The unallocated shares of common stock that our ESOP owns were reflected as a $9.5 million reduction to stockholders’ equity at September 30, 2015, compared to a $10.3 million reduction at December 31, 2014.

Cash Dividends. We declared cash dividends of $0.16 per share for the nine months endedSeptember 30, 2015, compared to a cash dividend of $0.05 per share for the nine months endedSeptember 30, 2014.

Stock Repurchase Program. On March 30, 2015, the Company announced that its Board had authorized the repurchase of up to 1,055,098 shares of the Company’s common stock, which represents approximately 5% of the Company’s issued and outstanding shares of common stock. The authorization will expire on December 31, 2015 unless extended by the Board. As of September 30, 2015, the Company had repurchased 600,000 shares of its common stock out of the 1,055,098 that had been authorized for repurchase in 2015. Since its inception, the Company has repurchased 4,839,134 shares of its common stock.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

Qualitative Analysis. A significant form of market risk is interest rate risk. Interest rate risk results from timing differences in the maturity or repricing of our assets, liabilities and off balance sheet contracts (i.e., forward loan commitments), the effect of loan prepayments and deposit withdrawals, the difference in the behavior of lending and funding rates arising from the use of different indices and “yield curve risk” arising from changing rate relationships across the spectrum of maturities for constant or variable credit risk investments. In addition to directly affecting net interest income, changes in market interest rates can also affect the amount of new loan originations, the ability of borrowers to repay variable rate loans, the volume of loan prepayments and refinancings, the carrying value of investment securities classified as available-for-sale and the flow and mix of deposits.

The general objective of our interest rate risk management is to determine the appropriate level of risk given our business strategy and then manage that risk in a manner that is consistent with our policy to reduce, to the extent possible, the exposure of our net interest income to changes in market interest rates. Our Asset/Liability Management Committee (“ALCO”), which consists of certain members of senior management, evaluates the interest rate risk inherent in certain assets and liabilities, our operating environment and capital and liquidity requirements, and modifies our lending, investing and deposit gathering strategies accordingly. The Board of Directors’ Asset/Liability Management Committee then reviews the ALCO’s activities and strategies, the effect of those strategies on our net interest margin, and the effect that changes in market interest rates would have on the economic value of our loan and securities portfolios as well as the intrinsic value of our deposits and borrowings, and reports to the full Board of Directors.

We actively evaluate interest rate risk in connection with our lending, investing and deposit activities. In an effort to better manage interest-rate risk, we have de-emphasized the origination of residential mortgage loans, and have increased our emphasis on the origination of nonresidential real estate loans, multi-family mortgage loans, commercial loans and commercial leases. In addition, depending on market interest rates and our capital and liquidity position, we generally sell all or a portion of our longer-term, fixed-rate residential loans, usually on a servicing-retained basis. Further, we primarily invest in shorter-duration securities, which generally have lower yields compared to longer-term investments. Shortening the average maturity of our interest-earning assets by increasing our investments in shorter-term loans and securities, as well as loans with variable rates of interest, helps to better match the maturities and interest rates of our assets and liabilities, thereby reducing the exposure of our net interest income to changes in market interest rates. Finally, we have classified all of our investment portfolio as available-for-sale so as to provide flexibility in liquidity management.

We utilize a combination of analyses to monitor the Bank’s exposure to changes in interest rates. The economic value of equity analysis is a model that estimates the change in net portfolio value (“NPV”) over a range of interest rate scenarios. NPV is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. In calculating changes in NPV, we assume estimated loan prepayment rates, reinvestment rates and deposit decay rates that seem most likely based on historical experience during prior interest rate changes.

Our net interest income analysis utilizes the data derived from the dynamic GAP analysis, described below, and applies several additional elements, including actual interest rate indices and margins, contractual limitations such as interest rate floors and caps and the U.S. Treasury yield curve as of the balance sheet date. In addition, we apply consistent parallel yield curve shifts (in both directions) to determine possible changes in net interest income if the theoretical yield curve shifts occurred instantaneously. Net interest income analysis also adjusts the dynamic GAP repricing analysis based on changes in prepayment rates resulting from the parallel yield curve shifts.

Our dynamic GAP analysis determines the relative balance between the repricing of assets and liabilities over multiple periods of time (ranging from overnight to five years). Dynamic GAP analysis includes expected cash flows from loans and mortgage-backed securities, applying prepayment rates based on the differential between the current interest rate and the market interest rate for each loan and security type. This analysis identifies mismatches in the timing of asset and liability repricing but does not necessarily provide an accurate indicator of interest rate risk because it omits the factors incorporated into the net interest income analysis.

Quantitative Analysis. The following table sets forth, as of September 30, 2015, the estimated changes in the Bank’s NPV and net interest income that would result from the designated instantaneous parallel shift in the U.S. Treasury yield curve. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results.

	Estimated Decrease in NPV					Increase (Decrease) in Estimated Net Interest Income
Change in Interest Rates (basis points)	Amount			Percent		Amount			Percent
	(dollars in thousands)
+400	$	(34,662	)	(15.76	)%	$	(573	)	(1.26	)%
+300	(24,307		)	(11.05	)	(356		)	(0.78	)
+200	(15,763		)	(7.17	)	(71		)	(0.16	)
+100	(1,118		)	(0.51	)	20			0.04
0	—			—		—			—

The Company has opted not to include an estimate for a decrease in rates at September 30, 2015 as the results are not considered relevant given the current targeted fed funds rate of the Federal Open Market Committee. The table set forth above indicates that at September 30, 2015, in the event of an immediate 200 basis point increase in interest rates, the Bank would be expected to experience an 7.17% decrease in NPV and a $71,000 decrease in net interest income. This data does not reflect any actions that we may undertake in response to changes in interest rates, such as changes in rates paid on certain deposit accounts based on local competitive factors, which could reduce the actual impact on NPV and net interest income, if any.

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurements. Modeling changes in NPV and net interest income requires that we make certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. The NPV and net interest income table presented above assumes that the composition of our interest-rate-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and, accordingly, the data does not reflect any actions that we may undertake in response to changes in interest rates, such as changes in rates paid on certain deposit accounts based on local competitive factors. The table also assumes that a particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or the repricing characteristics of specific assets and liabilities. Because of the shortcomings mentioned above, management considers many additional factors such as projected changes in loan and deposit balances and various projected forward interest rate scenarios when evaluating strategies for managing interest rate risk. Accordingly, although the NPV and net interest income table provides an indication of our sensitivity to interest rate changes at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income and will differ from actual results.

ITEM 4. CONTROLS AND PROCEDURES

An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chairman, Chief Executive Officer and President and the Executive Vice President and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities and Exchange Act of 1934, as amended) as of September 30, 2015. Based on that evaluation, the Company’s

46

management, including the Chairman, President, and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective.

During the quarter ended September 30, 2015, there have been no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II

ITEM 1. LEGAL PROCEEDINGS

The Company and its subsidiaries are subject to various legal actions arising in the normal course of business. In the opinion of management, based on currently available information, the resolution of these legal actions is not expected to have a material adverse effect on the Company’s results of operations.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in the Company’s Annual Report in Form 10-K for the year ended December 31, 2014.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Unregistered Sale of Equity Securities. Not applicable.

(b) Use of Proceeds. Not applicable

(c) Repurchases of Equity Securities.

On March 30, 2015, the Company announced that its Board had authorized the repurchase of up to 1,055,098 shares of the Company’s common stock. In accordance with this authorization, we have repurchased 600,000 shares of our common stock as of September 30, 2015. There were no share repurchases conducted in the third quarter of 2015. The authorization will expire on December 31, 2015 unless extended by the Board.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit Number	Description
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
101	The following financial statements from the BankFinancial Corporation Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated statement of conditions, (ii) consolidated statements of operations, (iii)  consolidated statements of comprehensive income, (iv)  consolidated statements of changes in stockholder's equity, (v) consolidated statements of cash flows and (vi) the notes to consolidated financial statements.

* A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		BANKFINANCIAL CORPORATION
Dated:	October 28, 2015	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board, Chief Executive Officer and President
			/s/ Paul A. Cloutier
			Paul A. Cloutier
			Executive Vice President and Chief Financial Officer

49

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, F. Morgan Gasior, certify that:

1) I have reviewed this quarterly report on Form 10-Q of BankFinancial Corporation;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	October 28, 2015	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board, Chief Executive Officer and President

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Paul A. Cloutier, certify that:

1) I have reviewed this quarterly report on Form 10-Q of BankFinancial Corporation;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	October 28, 2015	By:	/s/ Paul A. Cloutier
			Paul A. Cloutier
			Executive Vice President and Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer

Pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

F. Morgan Gasior, Chairman of the Board, Chief Executive Officer and President of BankFinancial Corporation, a Maryland corporation (the “Company”) and Paul A. Cloutier, Executive Vice President and Chief Financial Officer of the Company, each certify in his capacity as an officer of the Company that he has reviewed the Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 (the “Report”) and that to the best of his knowledge:

1. the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		BANKFINANCIAL CORPORATION
Dated:	October 28, 2015	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board and Chief Executive Officer
			/s/ Paul A. Cloutier
			Paul A. Cloutier
			Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable Credit Quality Indicators
Total loans	$ 1,170,796	$ 1,183,147
One-to-four family residential real estate loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	164,124	180,337
One to Four Family Residential Real Estate Loans-Owner occupied [Member] [Member]
Financing Receivable Credit Quality Indicators
Total loans	119,785	131,991
One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	44,339	48,346
Multi-family mortgage loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	478,057	480,349
Multi Family Mortgage Loans without wholesale [Member] [Member]
Financing Receivable Credit Quality Indicators
Total loans	320,155	345,111
Wholesale commercial lending [Member]
Financing Receivable Credit Quality Indicators
Total loans	157,902	135,238
Nonresidential Real Estate Loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	223,528	234,500
Construction loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	31	60
Land loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,291	1,825
Commercial loans - Secured [Member]
Financing Receivable Credit Quality Indicators
Total loans	22,732	11,946
Commercial loans - Unsecured [Member]
Financing Receivable Credit Quality Indicators
Total loans	3,206	1,885
Commercial Loans - Municipal loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,599	2,213
Commercial Loans - Warehouse Lines [Member]
Financing Receivable Credit Quality Indicators
Total loans	16,369	11,296
Commercial Loans - Health Care [Member]
Financing Receivable Credit Quality Indicators
Total loans	19,995	24,127
Aviation (Member) [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,021	1,108
Commercial loans - other [Member]
Financing Receivable Credit Quality Indicators
Total loans	15,294	14,307
Commercial Leases - Investment Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	157,893	160,208
Commercial Leases - Below Investment Grade [Member]
Financing Receivable Credit Quality Indicators
Total loans	7,336	11,309
Commercial Leases - Non Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	46,175	35,473
Commercial Leases - Lease Pools [Member]
Financing Receivable Credit Quality Indicators
Total loans	10,218	10,153
Consumer loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,927	2,051
Nonaccrual [Member]
Financing Receivable Credit Quality Indicators
Total loans	6,288	12,267
Nonaccrual [Member] | One-to-four family residential real estate loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	2,114	4,228
Nonaccrual [Member] | One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	411	198
Nonaccrual [Member] | Multi-family mortgage loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,404	4,515
Nonaccrual [Member] | Wholesale commercial lending [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Nonresidential Real Estate Loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	2,284	3,247
Nonaccrual [Member] | Construction loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Land loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial loans - Secured [Member]
Financing Receivable Credit Quality Indicators
Total loans	75	76
Nonaccrual [Member] | Commercial loans - Unsecured [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial Loans - Municipal loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial Loans - Warehouse Lines [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial Loans - Health Care [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial loans - other [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial Leases - Investment Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial Leases - Below Investment Grade [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial Leases - Non Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Commercial Leases - Lease Pools [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Nonaccrual [Member] | Consumer loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	3
Substandard [Member]
Financing Receivable Credit Quality Indicators
Total loans	13,464	13,975
Substandard [Member] | One-to-four family residential real estate loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	429	1,046
Substandard [Member] | One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	964
Substandard [Member] | Multi-family mortgage loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	5,741	3,430
Substandard [Member] | Wholesale commercial lending [Member]
Financing Receivable Credit Quality Indicators
Total loans	513	519
Substandard [Member] | Nonresidential Real Estate Loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	5,259	6,698
Substandard [Member] | Construction loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Land loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	819	613
Substandard [Member] | Commercial loans - Secured [Member]
Financing Receivable Credit Quality Indicators
Total loans	148	7
Substandard [Member] | Commercial loans - Unsecured [Member]
Financing Receivable Credit Quality Indicators
Total loans	555	698
Substandard [Member] | Commercial Loans - Municipal loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Commercial Loans - Warehouse Lines [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Commercial Loans - Health Care [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Commercial loans - other [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Commercial Leases - Investment Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Commercial Leases - Below Investment Grade [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Commercial Leases - Non Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Commercial Leases - Lease Pools [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Substandard [Member] | Consumer loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Pass [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,132,300	1,153,540
Pass [Member] | One-to-four family residential real estate loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	117,242	126,102
Pass [Member] | One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	43,705	46,253
Pass [Member] | Multi-family mortgage loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	312,554	336,557
Pass [Member] | Wholesale commercial lending [Member]
Financing Receivable Credit Quality Indicators
Total loans	157,389	134,719
Pass [Member] | Nonresidential Real Estate Loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	197,920	223,385
Pass [Member] | Construction loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	31	60
Pass [Member] | Land loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	472	1,212
Pass [Member] | Commercial loans - Secured [Member]
Financing Receivable Credit Quality Indicators
Total loans	22,509	11,863
Pass [Member] | Commercial loans - Unsecured [Member]
Financing Receivable Credit Quality Indicators
Total loans	2,651	1,147
Pass [Member] | Commercial Loans - Municipal loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,599	2,213
Pass [Member] | Commercial Loans - Warehouse Lines [Member]
Financing Receivable Credit Quality Indicators
Total loans	16,369	11,296
Pass [Member] | Commercial Loans - Health Care [Member]
Financing Receivable Credit Quality Indicators
Total loans	19,995	24,127
Pass [Member] | Aviation (Member) [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,021	1,108
Pass [Member] | Commercial loans - other [Member]
Financing Receivable Credit Quality Indicators
Total loans	15,294	14,307
Pass [Member] | Commercial Leases - Investment Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	157,893	160,208
Pass [Member] | Commercial Leases - Below Investment Grade [Member]
Financing Receivable Credit Quality Indicators
Total loans	7,336	11,309
Pass [Member] | Commercial Leases - Non Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	46,175	35,473
Pass [Member] | Commercial Leases - Lease Pools [Member]
Financing Receivable Credit Quality Indicators
Total loans	10,218	10,153
Pass [Member] | Consumer loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	1,927	2,048
Special Mention [Member]
Financing Receivable Credit Quality Indicators
Total loans	18,744	3,365
Special Mention [Member] | One-to-four family residential real estate loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	615
Special Mention [Member] | One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	223	931
Special Mention [Member] | Multi-family mortgage loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	456	609
Special Mention [Member] | Wholesale commercial lending [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Nonresidential Real Estate Loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	18,065	1,170
Special Mention [Member] | Construction loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Land loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial loans - Secured [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial loans - Unsecured [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	40
Special Mention [Member] | Commercial Loans - Municipal loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial Loans - Warehouse Lines [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial Loans - Health Care [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial loans - other [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial Leases - Investment Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial Leases - Below Investment Grade [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial Leases - Non Rated [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Commercial Leases - Lease Pools [Member]
Financing Receivable Credit Quality Indicators
Total loans	0	0
Special Mention [Member] | Consumer loans [Member]
Financing Receivable Credit Quality Indicators
Total loans	$ 0	$ 0

XML

Loans Receivable - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Reserve For Uncollected Loan Interest	$ 300	$ 500
Unpaid Principal Balance	7,631	14,824
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment	6,689	12,213
Loans Past Due Over 90 Days, still accruing	0	0
Consumer Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Principal Balance	0	3
One-to-four family residential real estate loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Principal Balance	3,139	4,793
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment	2,539	4,210
Loans Past Due Over 90 Days, still accruing	0	0
One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Principal Balance	359	291
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment	413	198
Loans Past Due Over 90 Days, still accruing	0	0
Multi-family mortgage loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Principal Balance	1,482	5,638
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment	1,399	4,481
Loans Past Due Over 90 Days, still accruing	0	0
Nonresidential real estate loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Principal Balance	2,575	4,023
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment	2,263	3,245
Loans Past Due Over 90 Days, still accruing	0	0
Commercial loans - Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Principal Balance	76	76
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment	75	76
Loans Past Due Over 90 Days, still accruing	0	0
Consumer loans [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment	0	3
Loans Past Due Over 90 Days, still accruing	$ 0	$ 0

XML

Securities - Unrealized Losses (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Amortized cost and fair values of securities
Less than 12 Months, Fair Value	$ 0		$ 0
12 Months or More, Fair Value	3,148,000		3,973,000
Fair Value, Total	3,148,000		3,973,000
Unrealized loss of securities
Less than 12 Months, Unrealized Loss	0	$ 0
12 Months or More, Unrealized Loss	(35,000)	(53,000)
Unrealized Loss, Total	(35,000)	(53,000)
Mortgage Backed Securities Residential [Member]
Amortized cost and fair values of securities
Less than 12 Months, Fair Value	0		0
12 Months or More, Fair Value	1,743,000		2,126,000
Fair Value, Total	1,743,000		2,126,000
Unrealized loss of securities
Less than 12 Months, Unrealized Loss	0	0
12 Months or More, Unrealized Loss	(25,000)	(40,000)
Unrealized Loss, Total	(25,000)	(40,000)
Collateralized mortgage obligations - residential [Member]
Amortized cost and fair values of securities
Less than 12 Months, Fair Value	0		0
12 Months or More, Fair Value	1,405,000		1,847,000
Fair Value, Total	1,405,000		$ 1,847,000
Unrealized loss of securities
Less than 12 Months, Unrealized Loss	0	0
12 Months or More, Unrealized Loss	(10,000)	(13,000)
Unrealized Loss, Total	$ (10,000)	$ (13,000)

XML

Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loans Carrying Amount		$ 1,700,000		$ 4,800,000
Impaired Loans Valuation Allowance		86,000		470,000
allowance for loan losses, specific reserve, increase or decrease	$ 345,000	(384,000)
Other Real Estate		2,900,000		3,000,000
Real Estate Owned, Valuation Allowance		1,047,000		803,000
Fair Value, Impaired loans		1,611,000		4,344,000
Fair Value, Other real estate owned		1,860,000		2,199,000
Other Real Estate Owned Write Downs		467,000	$ 392,000
Mortgage Servicing Rights (MSR) Impairment (Recovery)		(2,000)	$ (6,000)
One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans				70,000
Fair Value, Other real estate owned				55,000
Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans				1,905,000
Fair Value, Other real estate owned				1,265,000
Nonresidential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans				2,369,000
Fair Value, Other real estate owned				126,000
Nonrecurring [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		1,611,000		4,344,000
Fair Value, Other real estate owned		1,860,000		2,199,000
Mortgage servicing rights		297,000		160,000
Nonrecurring [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans				70,000
Fair Value, Other real estate owned		42,000		55,000
Nonrecurring [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		230,000		1,905,000
Fair Value, Other real estate owned		962,000		1,265,000
Nonrecurring [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		1,323,000		2,369,000
Fair Value, Other real estate owned		107,000		126,000
Nonrecurring [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		58,000
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0		0
Fair Value, Other real estate owned		0		0
Mortgage servicing rights		0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans				0
Fair Value, Other real estate owned		0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0		0
Fair Value, Other real estate owned		0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0		0
Fair Value, Other real estate owned		0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0
Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0		0
Fair Value, Other real estate owned		0		0
Mortgage servicing rights		297,000		160,000
Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans				0
Fair Value, Other real estate owned		0		0
Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0		0
Fair Value, Other real estate owned		0		0
Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0		0
Fair Value, Other real estate owned		0		0
Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		1,611,000		4,344,000
Fair Value, Other real estate owned		1,860,000		2,199,000
Mortgage servicing rights		0		$ 0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Other real estate owned		42,000
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		230,000
Fair Value, Other real estate owned		962,000
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		1,323,000
Fair Value, Other real estate owned		107,000
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value, Impaired loans		$ 58,000
Sales Comparison Valuation Technique [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description			Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description		Discount applied to valuation	Discount applied to valuation
Sales Comparison Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description		Sales comparison	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description		Comparison between sales and income approaches	Comparison between sales and income approaches
Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description		Sales comparison	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description		Comparison between sales and income approaches	Comparison between sales and income approaches
Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description		Sales comparison	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description		Comparison between sales and income approaches	Comparison between sales and income approaches
Sales Comparison Valuation Technique [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description		Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description		Discount applied to valuation
Income Approach Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description		Income approach	Income approach
Fair Value Measurements, Sensitivity Analysis, Description		Cap Rate	Cap Rate
Income Approach Valuation Technique [Member] | Nonresidential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description		Income approach	Income approach
Fair Value Measurements, Sensitivity Analysis, Description		Cap Rate	Cap Rate
Maximum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate				4.80%
Maximum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		10.00%		43.70%
Maximum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments				33.90%
Maximum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		1.24%
Maximum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		34.30%
Maximum [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate		10.00%		13.80%
Maximum [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate				11.00%
Maximum [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate		8.50%
Maximum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		2.80%		7.70%
Maximum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		17.24%		13.50%
Maximum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments				4.20%
Maximum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		58.00%
Fair Value Inputs, Comparability Adjustments				32.30%
Maximum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Land [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		11.68%
Minimum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate				4.80%
Minimum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		10.00%		(2.10%)
Minimum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments				(2.10%)
Minimum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		(25.74%)
Minimum [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		34.30%
Minimum [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate		10.00%		9.60%
Minimum [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate				10.00%
Minimum [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate		8.50%
Minimum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		(0.35%)		6.30%
Minimum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		(7.70%)		(6.60%)
Minimum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments				(21.90%)
Minimum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		58.00%
Fair Value Inputs, Comparability Adjustments				32.30%
Minimum [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Land [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		(67.74%)
Weighted Average [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate				4.80%
Weighted Average [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		10.00%		41.00%
Weighted Average [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments				24.00%
Weighted Average [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		(21.00%)
Weighted Average [Member] | Impaired Loans [Member] | Sales Comparison Valuation Technique [Member] | Commercial loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		34.30%
Weighted Average [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate		10.00%		10.00%
Weighted Average [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate				10.00%
Weighted Average [Member] | Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Cap Rate		8.50%
Weighted Average [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | One-to-four family residential real estate loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		0.03%		7.00%
Weighted Average [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Multi-family mortgage loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments		6.00%		0.40%
Weighted Average [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Comparability Adjustments				(10.00%)
Weighted Average [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		58.00%
Fair Value Inputs, Comparability Adjustments				32.30%
Weighted Average [Member] | Other Real Estate Owned [Member] | Sales Comparison Valuation Technique [Member] | Land [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		7.00%

XML

Loans Receivable - Modified Troubled Debt Restructuring (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan
Financing Receivable, Modifications [Line Items]
Troubled Debt Restructurings Value Of Decreased Interest Income	$ 0	$ 0		$ 1,000
Loans modified			$ 2,574,000	$ 1,600,000
Loans by class modified as TDRs
Number of Loans | loan	5	2	6	5
Pre-Modification outstanding recorded investment	$ 338,000	$ 555,000	$ 401,000	$ 695,000
Post-Modification outstanding recorded investment	211,000	350,000	$ 274,000	449,000
Due to reduction in interest rate		0		19,000
Due to extension of maturity date		345,000		373,000
Due to permanent reduction in recorded investment		5,000		57,000
Total		350,000		449,000
Financing Receivable, Modifications, Increase In Allowance For Loan And Leases Losses	0	0
Troubled Debt Restructuring Charge Off	$ 127,000	$ 205,000		$ 246,000
One-to-four family residential real estate loans [Member]
Loans by class modified as TDRs
Number of Loans | loan	5	1	6	4
Pre-Modification outstanding recorded investment	$ 338,000	$ 345,000	$ 401,000	$ 485,000
Post-Modification outstanding recorded investment	211,000	345,000	274,000	444,000
Due to reduction in interest rate	0	0	0	19,000
Due to extension of maturity date	79,000	345,000	142,000	373,000
Due to permanent reduction in recorded investment	132,000	0	132,000	52,000
Total	$ 211,000	$ 345,000	$ 274,000	$ 444,000
Commercial loans - Secured [Member]
Loans by class modified as TDRs
Number of Loans | loan	0	1		1
Pre-Modification outstanding recorded investment	$ 0	$ 210,000		$ 210,000
Post-Modification outstanding recorded investment	$ 0	5,000		5,000
Due to reduction in interest rate				0
Due to extension of maturity date		0		0
Due to permanent reduction in recorded investment		5,000		5,000
Total		$ 5,000		$ 5,000

XML

Consolidated Statements of Cash Flow - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income (loss)	$ 6,559	$ 5,936
Adjustments to reconcile to net loss to net cash from operating activities
Provision for (recovery of) loan losses	(2,168)	20
ESOP shares earned	910	761
Stock-based compensation expense	351	52
Depreciation and amortization	2,754	2,864
Amortization of premiums and discounts on securities and loans	(214)	(325)
Amortization Of Intangibles	414	435
Amortization and impairment of servicing assets	107	112
Net change in net deferred loan origination costs	(384)	(99)
Net loss on sale of other real estate owned	(91)	(40)
Net gain on sale of loans	(92)	(107)
Gain (Loss) on Sale of Securities, Net	0	7
Gain (Loss) on Sale of Property Plant Equipment	1	(5)
Loans originated for sale	(3,593)	(3,492)
Proceeds from sale of loans	3,685	3,599
REO valuation adjustments	467	392
Net change in:
Accrued interest receivable	(74)	343
Earnings on bank owned life insurance	(142)	(182)
Other assets	5,906	3,638
Accrued interest payable and other liabilities	(2,154)	(13)
Net cash from operating activities	12,242	13,896
Cash flows from investing activities
Payments to Acquire Federal Home Loan Bank Stock	0	189
Securities
Proceeds from maturities	53,410	43,924
Proceeds from principal repayments	5,888	5,259
Proceeds from Sale of Available-for-sale Securities	0	3,663
Purchases of securities	(42,643)	(57,023)
Payments for Participation Liabilities	3,350
Loans receivable
Principal payments on loans receivable	333,644	322,271
Originated for investment	(326,624)	(363,909)
Proceeds from sale of other real estate owned	2,487	3,790
Purchases of premises and equipment, net	(363)	(362)
Net cash from (used in) investing activities	29,149	(42,576)
Cash flows from financing activities
Net change in deposits	(30,179)	(34,406)
Net change in borrowings	5,127	(221)
Net change in advance payments by borrowers for taxes and insurance	(3,734)	(3,670)
Payments for Repurchase of Common Stock	(7,388)
Payments of Ordinary Dividends, Common Stock	(3,328)	(1,055)
Net cash used in financing activities	(39,502)	(39,352)
Net change in cash and cash equivalents	1,889	(68,032)
Beginning cash and cash equivalents	59,581	160,957
Ending cash and cash equivalents	61,470	92,925
Supplemental disclosures of cash flow information:
Interest paid	2,113	2,344
Income taxes paid	262	114
Loans transferred to other real estate owned	$ 1,314	$ 3,836

XML

Fair Value - Carrying Amount and Estimated Fair Value of Finanical Instruments (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Cash and Cash Equivalents, at Carrying Value	$ 61,470	$ 59,581	$ 92,925	$ 160,957
Financial assets
Securities, carrying amount	104,242	121,174
Loans receivable, net of allowance for loan losses, carrying amounts	1,162,298	1,172,356
FHLBC stock, carrying amount	6,257	6,257
Accrued interest receivable, carrying amount	4,000	3,926
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets
Available-for-sale Securities, Fair Value Disclosure	104,242	121,174
Loans Receivable, Fair Value Disclosure	1,161,317	1,170,525
Accounts Receivable, Fair Value Disclosure	4,000	3,926
Financial liabilities
Cash and Cash Equivalents, Fair Value Disclosure	61,470	59,581
Demand Deposit Accounts Fair Value Disclosure	233,192	134,129
Deposits Savings Deposits Fair Value Disclosure	152,585	154,532
Now Money Market Accounts Fair Value Disclosure	572,860	690,193
Certificates Of Deposit Fair Value Disclosure	222,878	232,588
Short Term Borrowings Fair Value Disclosure	18,049	12,908
Accrued Liabilities, Fair Value Disclosure	46	89
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member]
Financial assets
Loans Receivable, Fair Value Disclosure		0
Accounts Receivable, Fair Value Disclosure		0
Financial liabilities
Cash and Cash Equivalents, Fair Value Disclosure	8,809	9,693
Demand Deposit Accounts Fair Value Disclosure		0
Deposits Savings Deposits Fair Value Disclosure		0
Now Money Market Accounts Fair Value Disclosure		0
Certificates Of Deposit Fair Value Disclosure		0
Short Term Borrowings Fair Value Disclosure		0
Accrued Liabilities, Fair Value Disclosure		0
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member]
Financial assets
Available-for-sale Securities, Fair Value Disclosure	103,730	120,665
Loans Receivable, Fair Value Disclosure	1,159,706	1,166,181
Accounts Receivable, Fair Value Disclosure	4,000	3,926
Financial liabilities
Cash and Cash Equivalents, Fair Value Disclosure	52,661	49,888
Demand Deposit Accounts Fair Value Disclosure	233,192	134,129
Deposits Savings Deposits Fair Value Disclosure	152,585	154,532
Now Money Market Accounts Fair Value Disclosure	572,860	690,193
Certificates Of Deposit Fair Value Disclosure	222,878	232,588
Short Term Borrowings Fair Value Disclosure	18,049	12,908
Accrued Liabilities, Fair Value Disclosure	46	89
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Inputs, Level 3 [Member]
Financial assets
Loans Receivable, Fair Value Disclosure	1,611	4,344
Reported Value Measurement [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Cash and Cash Equivalents, at Carrying Value	61,470	59,581
Financial assets
Securities, carrying amount	104,242	121,174
Loans receivable, net of allowance for loan losses, carrying amounts	1,162,298	1,172,356
FHLBC stock, carrying amount	6,257	6,257
Accrued interest receivable, carrying amount	4,000	3,926
Financial liabilities
Demand Deposit Accounts	233,192	134,129
Deposits, Savings Deposits	152,585	154,532
Now Money Market Accounts	572,860	690,193
Certificates of Deposit, at Carrying Value	222,897	232,859
Short-term Debt	18,048	12,921
Accrued Interest Payable	46	89
Equity Funds [Member]
Financial assets
Securities, carrying amount	$ 512	$ 509
Impaired Loans [Member] | Maximum [Member] | Sales Comparison Valuation Technique [Member] | One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		4.80%
Impaired Loans [Member] | Maximum [Member] | Sales Comparison Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments	10.00%	43.70%
Impaired Loans [Member] | Maximum [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments		33.90%
Impaired Loans [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Cap Rate	10.00%	13.80%
Impaired Loans [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Cap Rate		11.00%
Impaired Loans [Member] | Minimum [Member] | Sales Comparison Valuation Technique [Member] | One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		4.80%
Impaired Loans [Member] | Minimum [Member] | Sales Comparison Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments	10.00%	(2.10%)
Impaired Loans [Member] | Minimum [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments		(2.10%)
Impaired Loans [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Cap Rate	10.00%	9.60%
Impaired Loans [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Cap Rate		10.00%
Impaired Loans [Member] | Weighted Average [Member] | Sales Comparison Valuation Technique [Member] | One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate		4.80%
Impaired Loans [Member] | Weighted Average [Member] | Sales Comparison Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments	10.00%	41.00%
Impaired Loans [Member] | Weighted Average [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments		24.00%
Impaired Loans [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Cap Rate	10.00%	10.00%
Impaired Loans [Member] | Weighted Average [Member] | Income Approach Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Cap Rate		10.00%
Other Real Estate Owned [Member] | Maximum [Member] | Sales Comparison Valuation Technique [Member] | One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	2.80%	7.70%
Other Real Estate Owned [Member] | Maximum [Member] | Sales Comparison Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments	17.24%	13.50%
Other Real Estate Owned [Member] | Maximum [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments		4.20%
Other Real Estate Owned [Member] | Minimum [Member] | Sales Comparison Valuation Technique [Member] | One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	(0.35%)	6.30%
Other Real Estate Owned [Member] | Minimum [Member] | Sales Comparison Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments	(7.70%)	(6.60%)
Other Real Estate Owned [Member] | Minimum [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments		(21.90%)
Other Real Estate Owned [Member] | Weighted Average [Member] | Sales Comparison Valuation Technique [Member] | One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Inputs, Discount Rate	0.03%	7.00%
Other Real Estate Owned [Member] | Weighted Average [Member] | Sales Comparison Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments	6.00%	0.40%
Other Real Estate Owned [Member] | Weighted Average [Member] | Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Financial liabilities
Fair Value Inputs, Comparability Adjustments		(10.00%)

XML

Loans Receivable - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Allowance for loan losses and the loans receivable by portfolio segment
Net deferred loan origination costs	$ 1,583	$ 1,199
Loans, net	$ 1,162,298	$ 1,172,356

XML

Loans Receivable - Loan Origination and Risk Management (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases, amount	$ 1,170,796	$ 1,183,147
Multi-family mortgage loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases, amount	478,057	480,349
Nonresidential Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases, amount	223,528	234,500
Commercial leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases, amount	$ 221,622	$ 217,143

XML

Repurchase Agreements (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Repurchase Agreements [Abstract]
Available-for-sale Securities Pledged as Collateral	$ 6,100	$ 6,800
Carrying Value of Federal Funds Purchased, Securities Sold under Agreements to Repurchase, and Deposits Received for Securities Loaned	3,048	2,921
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances	$ 15,000	$ 10,000

XML

Loans Receivable - Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 10,810	$ 14,452	$ 11,990	$ 14,154
Loans charged off	163	1,176	914	3,005
Recoveries	390	1,188	1,173	1,882
Net charge-off	(227)	(12)	(259)	1,123
Provision for (recovery of) loan losses	(956)	(1,413)	(2,168)	20
Ending balance	10,081	13,051	10,081	13,051
One-to-four family residential real estate loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			2,148
Loans charged off	(125)	(298)	(327)	(644)
Recoveries	16	26	295	134
Ending balance	1,601		1,601
Multi-family mortgage loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			5,205
Loans charged off	(9)	(97)	(189)	(781)
Recoveries	169	11	177	31
Ending balance	3,888		3,888
Nonresidential real estate loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			2,940
Loans charged off	(26)	(695)	(289)	(1,461)
Recoveries	24	116	49	400
Ending balance	2,695		2,695
Construction and land loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			80
Loans charged off	0	0	0	(1)
Recoveries	38	29	44	287
Ending balance	74		74
Commercial loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			554
Loans charged off	0	(78)	(98)	(100)
Recoveries	143	1,005	606	1,027
Ending balance	789		789
Commercial leases [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			1,009
Loans charged off	0	8	0	8
Recoveries	0	0	1	0
Ending balance	1,006		1,006
Consumer loans [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			54
Loans charged off	(3)	0	(11)	(10)
Recoveries	0	$ 1	1	$ 3
Ending balance	$ 28		$ 28

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Loans Receivable - Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 1,170,796	$ 1,170,796	$ 1,183,147
Loans individually evaluated for impairment by class loans
Loan Balance	10,293	10,293	10,614
Recorded Investment	9,279	9,279	9,331
Partial Charge-off	1,054	1,054	1,193
Average Investment in Impaired Loans	8,667	9,170	11,610
Interest Income Recognized	64	242	315
Loan Balance (With an allowance recorded)	1,795	1,795	5,778
Recorded Investment (With an allowance recorded)	1,697	1,697	4,814
Partial Charge-offs (With an allowance recorded)	67	67	987
Allowance for loan losses (With an allowance recorded)	86	86	470
Average Investment in Impaired Loans (With an allowance recorded)	1,712	3,605	4,263
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0	14	115
Impaired Loan, Total	12,088	12,088	16,392
Recorded Investment, Total	10,976	10,976	14,145
Partial Charge-offs, Total	1,121	1,121	2,180
Average Investment in Impaired Loans, Total	10,379	12,775	15,873
Interest Income Recognized, Total	64	256	430
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	9,995	9,995	11,520
Net deferred loan origination costs	1,583	1,583	1,199
Loans and Leases Receivable, Allowance	10,081	10,081	11,990	$ 10,810	$ 13,051	$ 14,452	$ 14,154
Financing Receivable, Individually Evaluated for Impairment	11,012	11,012	14,222
Financing Receivable, Collectively Evaluated for Impairment	1,159,784	1,159,784	1,168,925
Loans, net	1,162,298	1,162,298	1,172,356
One-to-four family residential real estate loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	164,124	164,124	180,337
Loans individually evaluated for impairment by class loans
Loan Balance	3,543	3,543	3,246
Recorded Investment	2,830	2,830	2,656
Partial Charge-off	785	785	649
Average Investment in Impaired Loans	2,742	2,674	2,777
Interest Income Recognized	6	19	44
Allowance for loan losses (With an allowance recorded)	0	0	8
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,601	1,601	2,140
Loans and Leases Receivable, Allowance	1,601	1,601	2,148
Financing Receivable, Individually Evaluated for Impairment	3,353	3,353	4,174
Financing Receivable, Collectively Evaluated for Impairment	160,771	160,771	176,163
One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	44,339	44,339	48,346
Loans individually evaluated for impairment by class loans
Loan Balance	567	567	1,481
Recorded Investment	520	520	1,425
Partial Charge-off	57	57	57
Average Investment in Impaired Loans	704	1,126	745
Interest Income Recognized	6	31	76
Loan Balance (With an allowance recorded)			115
Recorded Investment (With an allowance recorded)			78
Partial Charge-offs (With an allowance recorded)			37
Allowance for loan losses (With an allowance recorded)			8
Average Investment in Impaired Loans (With an allowance recorded)			202
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method			0
Multi-family mortgage loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	478,057	478,057	480,349
Loans individually evaluated for impairment by class loans
Loan Balance	2,763	2,763	3,174
Recorded Investment	2,739	2,739	2,593
Partial Charge-off	0	0	481
Average Investment in Impaired Loans	1,970	1,856	3,419
Interest Income Recognized	19	69	120
Loan Balance (With an allowance recorded)	238	238	2,713
Recorded Investment (With an allowance recorded)	233	233	2,131
Partial Charge-offs (With an allowance recorded)	0	0	624
Allowance for loan losses (With an allowance recorded)	3	3	226
Average Investment in Impaired Loans (With an allowance recorded)	587	1,483	2,343
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0	0	48
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,885	3,885	4,979
Loans and Leases Receivable, Allowance	3,888	3,888	5,205
Financing Receivable, Individually Evaluated for Impairment	3,487	3,487	5,282
Financing Receivable, Collectively Evaluated for Impairment	474,570	474,570	475,067
Multi Family Mortgage Loans without wholesale [Member] [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	320,155	320,155	345,111
Loans individually evaluated for impairment by class loans
Allowance for loan losses (With an allowance recorded)	3	3
Wholesale commercial lending [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	157,902	157,902	135,238
Loans individually evaluated for impairment by class loans
Loan Balance	513	513	519
Recorded Investment	508	508	513
Partial Charge-off	0	0	0
Average Investment in Impaired Loans	510	515	401
Interest Income Recognized	9	26	0
Nonresidential real estate loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	223,528	223,528	234,500
Loans individually evaluated for impairment by class loans
Loan Balance	2,907	2,907	2,118
Recorded Investment	2,682	2,682	2,068
Partial Charge-off	212	212	6
Average Investment in Impaired Loans	2,741	2,999	4,175
Interest Income Recognized	24	97	72
Loan Balance (With an allowance recorded)	1,481	1,481	2,950
Recorded Investment (With an allowance recorded)	1,389	1,389	2,605
Partial Charge-offs (With an allowance recorded)	67	67	326
Allowance for loan losses (With an allowance recorded)	66	66	236
Average Investment in Impaired Loans (With an allowance recorded)	1,106	2,114	1,718
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0	14	67
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	2,629	2,629	2,704
Loans and Leases Receivable, Allowance	2,695	2,695	2,940
Financing Receivable, Individually Evaluated for Impairment	4,097	4,097	4,690
Financing Receivable, Collectively Evaluated for Impairment	219,431	219,431	229,810
Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	31	31	60
Land loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	1,291	1,291	1,825
Commercial loans - Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	22,732	22,732	11,946
Loans individually evaluated for impairment by class loans
Loan Balance			76
Recorded Investment			76
Partial Charge-off			0
Average Investment in Impaired Loans			93
Interest Income Recognized			3
Loan Balance (With an allowance recorded)	76	76
Recorded Investment (With an allowance recorded)	75	75
Partial Charge-offs (With an allowance recorded)	0	0
Allowance for loan losses (With an allowance recorded)	17	17
Average Investment in Impaired Loans (With an allowance recorded)	19	8
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	0	0
Commercial loans - unsecured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	3,206	3,206	1,885
Commercial loans - other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	15,294	15,294	14,307
Consumer loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	1,927	1,927	2,051
Loans individually evaluated for impairment by class loans
Allowance for loan losses (With an allowance recorded)	0	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	28	28	54
Loans and Leases Receivable, Allowance	28	28	54
Financing Receivable, Individually Evaluated for Impairment	0	0	0
Financing Receivable, Collectively Evaluated for Impairment	1,927	1,927	2,051
Construction And Land Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	1,322	1,322	1,885
Loans individually evaluated for impairment by class loans
Allowance for loan losses (With an allowance recorded)	0	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	74	74	80
Loans and Leases Receivable, Allowance	74	74	80
Financing Receivable, Individually Evaluated for Impairment	0	0	0
Financing Receivable, Collectively Evaluated for Impairment	1,322	1,322	1,885
Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	80,216	80,216	66,882
Loans individually evaluated for impairment by class loans
Allowance for loan losses (With an allowance recorded)	17	17	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	772	772	554
Loans and Leases Receivable, Allowance	789	789	554
Financing Receivable, Individually Evaluated for Impairment	75	75	76
Financing Receivable, Collectively Evaluated for Impairment	80,141	80,141	66,806
Finance Leases Financing Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	221,622	221,622	217,143
Loans individually evaluated for impairment by class loans
Allowance for loan losses (With an allowance recorded)	0	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,006	1,006	1,009
Loans and Leases Receivable, Allowance	1,006	1,006	1,009
Financing Receivable, Individually Evaluated for Impairment	0	0	0
Financing Receivable, Collectively Evaluated for Impairment	221,622	221,622	217,143
One to Four Family Residential Real Estate Loans-Owner occupied [Member] [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	$ 119,785	$ 119,785	$ 131,991

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Consolidated Statements of Changes In Stockholders' Equity Consolidated Statements of Changes in Stockholders' Equity (parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of Stockholders' Equity (parenthetical) [Abstract]
Common Stock, Dividends, Per Share, Declared	$ 0.16	$ 0.05
Stock Repurchased During Period, Shares	600,000

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Loans Receivable - Contractually Required Payments (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
One-to-four family residential real estate loans [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment, Total	$ 52,000	$ 52,000

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Loans Receivable - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Reserve For Uncollected Loan Interest	$ 300,000		$ 300,000		$ 500,000
Financing receivable modifications	2,991,000		2,991,000		3,003,000
Outstanding Commitments To Borrowers Loans Classified As Troubled Debt Restructurings			0		0
Troubled Debt Restructurings Value Of Decreased Interest Income	0	$ 0		$ 1,000
Financing Receivable, Modifications, Increase In Allowance For Loan And Leases Losses	0	0
Charges regarding TDRs	127,000	$ 205,000		246,000
Loans modified			2,574,000	$ 1,600,000
Allowance for Loan and Lease Losses [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Valuation of reserves allocation	$ 0		$ 0		$ 38,000

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Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from other financial institutions	$ 8,809	$ 9,693
Interest-bearing deposits in other financial institutions	52,661	49,888
Cash and cash equivalents	61,470	59,581
Securities, at fair value	104,242	121,174
Loans receivable, net of allowance for loan losses: September 30, 2015, $10,081 and December 31, 2014, $11,990	1,162,298	1,172,356
Other Real Estate Owned At Carrying Value	4,809	6,358
Stock in Federal Home Loan Bank, at cost	6,257	6,257
Premises and equipment, net	33,063	34,286
Accrued interest receivable	4,000	3,926
Core deposit intangible	1,441	1,855
Bank owned life insurance	22,335	22,193
Deferred Tax Assets, Net, Current	27,733	31,643
Other assets	3,775	5,781
Total assets	1,431,423	1,465,410
Deposits
Noninterest-bearing	233,192	134,129
Interest-bearing	948,342	1,077,584
Total deposits	1,181,534	1,211,713
Borrowings	18,048	12,921
Advance payments by borrowers taxes and insurance	7,755	11,489
Accrued interest payable and other liabilities	11,012	13,166
Total liabilities	$ 1,218,349	$ 1,249,289
Commitments and contingent liabilities
Stockholders' equity:
Preferred Stock, $0.01 par value, 25,000,000 shares authorized, none issued or outstanding	$ 0	$ 0
Common Stock, $0.01 par value, 100,000,000 shares authorized; 20,501,966 shares issued at September 30, 2015 and 21,101,966 at December 31, 2014	205	211
Additional paid-in capital	186,992	193,845
Retained earnings (deficit)	34,815	31,584
Unearned Employee Stock Ownership Plan shares	(9,544)	(10,276)
Accumulated other comprehensive income	606	757
Total stockholders' equity	213,074	216,121
Total liabilities and stockholders' equity	$ 1,431,423	$ 1,465,410

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Equity Awards (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Aug. 10, 2015	Jun. 27, 2006
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		0.51%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term		1 year 3 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number			1,215,697
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		18.35%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Payments		$ 0.0133
Allocated Share-based Compensation Expense	$ 280,000	$ 280,000
weighted average fair value of stock options granted	$ 0.92	$ 0.92
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 839,000	$ 839,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		1,215,697
Stock Options Outstanding	1,215,697	1,215,697
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms		1 year 8 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding	$ 535,000	$ 535,000
stock options exercisable	303,924	303,924
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested	$ 134,000	$ 134,000
Stock Options Fully Vested and Expected to Vest	1,215,697	1,215,697
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 11.99
BankFinancial Corporation 2006 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				3,425,275

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Consolidated Statements Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 2,349	$ 3,590	$ 6,559	$ 5,936
Unrealized holding gain (loss) arising during the period	(34)	(26)	(244)	(52)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	13		93
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(21)	(26)	(151)	(52)
Other than Temporary Impairment Losses, Investments, Reclassification Adjustment of Noncredit Portion Included in Net Income, Availabe-for-sale Securities, before Tax	0	0	0	7
Other comprehensive loss, net of tax effect	(21)	(26)	(151)	(45)
Comprehensive income (loss)	$ 2,328	$ 3,564	$ 6,408	$ 5,891

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Loans Receivable - Aging of Recorded Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment, 30 to 59 Days Past Due	$ 581	$ 5,013
Recorded Investment, 60 to 89 Days Past Due	1,059	2,074
Recorded Investment, 90 Days or Greater Past Due	5,904	10,729
Recorded Investment, Total Past Due	7,544	17,816
Recorded Investment, Loans Not Past Due	1,160,966	1,158,849
One-to-four family residential real estate loans - non-owner occupied loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment, 30 to 59 Days Past Due	3	320
Recorded Investment, 60 to 89 Days Past Due	0	165
Recorded Investment, 90 Days or Greater Past Due	413	198
Recorded Investment, Total Past Due	416	683
Recorded Investment, Loans Not Past Due	43,895	47,350
Multi-family mortgage loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment, 30 to 59 Days Past Due	517	2,314
Recorded Investment, 60 to 89 Days Past Due	178	1,187
Recorded Investment, 90 Days or Greater Past Due	882	3,363
Recorded Investment, Total Past Due	1,577	6,864
Recorded Investment, Loans Not Past Due	317,154	334,173
Construction loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	31	63
Land loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	1,289	1,814
Commercial loans - Secured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	75	76
Recorded Investment, Total Past Due	75	76
Recorded Investment, Loans Not Past Due	22,731	11,863
Commercial loans - Unsecured [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	1
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	1
Recorded Investment, Loans Not Past Due	$ 3,217	$ 1,884

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Securities - Fair Value of Securites (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Unrealized gains and losses recognized in accumulated other comprehensive income (loss)
Amortized Cost	$ 103,259	$ 119,947
Available for sale securities, accumulated gross unrealized gain before tax	1,018	1,280
Available for sale securities, accumulated gross unrealized loss before tax	(35)	(53)
Total Fair value	104,242	121,174
Certificates of deposit [Member]
Unrealized gains and losses recognized in accumulated other comprehensive income (loss)
Amortized Cost	76,194	86,049
Available for sale securities, accumulated gross unrealized gain before tax	0	0
Available for sale securities, accumulated gross unrealized loss before tax	0	0
Total Fair value	76,194	86,049
Equity mutual fund [Member]
Unrealized gains and losses recognized in accumulated other comprehensive income (loss)
Amortized Cost	500	500
Available for sale securities, accumulated gross unrealized gain before tax	12	9
Available for sale securities, accumulated gross unrealized loss before tax	0	0
Total Fair value	512	509
Mortgage - backed securities - residential [Member]
Unrealized gains and losses recognized in accumulated other comprehensive income (loss)
Amortized Cost	18,944	23,433
Available for sale securities, accumulated gross unrealized gain before tax	957	1,218
Available for sale securities, accumulated gross unrealized loss before tax	(25)	(40)
Total Fair value	19,876	24,611
Collateralized mortgage obligations - residential [Member]
Unrealized gains and losses recognized in accumulated other comprehensive income (loss)
Amortized Cost	7,596	9,936
Available for sale securities, accumulated gross unrealized gain before tax	49	53
Available for sale securities, accumulated gross unrealized loss before tax	(10)	(13)
Total Fair value	7,635	9,976
SBA-guaranteed loan participation certificates [Member]
Unrealized gains and losses recognized in accumulated other comprehensive income (loss)
Amortized Cost	25	29
Available for sale securities, accumulated gross unrealized gain before tax	0	0
Available for sale securities, accumulated gross unrealized loss before tax	0	0
Total Fair value	$ 25	$ 29

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Loans Receivable - Troubled Debt Restructuring (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan	Dec. 31, 2014 USD ($)
Financing Receivable, Modifications [Line Items]
Due To Extension Of Maturity Date		$ 345,000		$ 373,000
Outstanding Commitments To Borrowers Loans Classified As Troubled Debt Restructurings			$ 0		$ 0
Troubled Debt Restructurings
Financing receivable modifications	$ 2,991,000		2,991,000		3,003,000
Troubled Debt Restructurings Value Of Decreased Interest Income	0	0		1,000
Financing Receivable, Modifications, Increase In Allowance For Loan And Leases Losses	0	0
Troubled Debt Restructuring Charge Off			$ 0.0000	$ 0
Number Of Loans Default Subsequent Modification | loan			1	1
Accrual Loans [Member]
Troubled Debt Restructurings
Financing receivable modifications	2,783,000		$ 2,783,000		2,427,000
Non Accrual Loans [Member]
Troubled Debt Restructurings
Financing receivable modifications	208,000		208,000		576,000
One-to-four family residential real estate loans - non-owner occupied loans [Member] | Accrual Loans [Member]
Troubled Debt Restructurings
Financing receivable modifications	1,657,000		1,657,000		1,917,000
One-to-four family residential real estate loans - non-owner occupied loans [Member] | Non Accrual Loans [Member]
Troubled Debt Restructurings
Financing receivable modifications	208,000		208,000		230,000
Multi-family mortgage loans [Member] | Accrual Loans [Member]
Troubled Debt Restructurings
Financing receivable modifications	1,126,000		1,126,000		510,000
Multi-family mortgage loans [Member] | Non Accrual Loans [Member]
Troubled Debt Restructurings
Financing receivable modifications	0		0		346,000
Commercial loans - Secured [Member]
Financing Receivable, Modifications [Line Items]
Due To Extension Of Maturity Date		0		$ 0
One to Four Family Residential Real Estate Loans [Member]
Financing Receivable, Modifications [Line Items]
Due To Extension Of Maturity Date	79,000	$ 345,000	142,000	$ 373,000
Allowance for Loan and Lease Losses [Member]
Troubled Debt Restructurings
Valuation Allowances and Reserves, Balance	$ 0		$ 0		$ 38,000

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Securities - Proceeds and Gross Gains (Losses) From Sale of Securities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Proceeds and Gross Gains (Losses) from Sale of Securities [Abstract]
Proceeds from Sale of Available-for-sale Securities	$ 0	$ 0	$ 3,663
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 0	$ 0	$ 7

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Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Unearned Employee Stock Ownership Plan Shares [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2013	$ 175,627	$ 211	$ 193,594	$ (7,342)	$ (11,255)	$ 419
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	5,936	0	0	5,936	0	0
Other comprehensive income, net of tax effects	(45)	0	0	0	0	(45)
Nonvested stock awards-stock-based compensation expense	52	0	52	0	0	0
Cash dividends declared on common stock (2014: $0.05, 2015: $0.16, per share)	(1,055)	0	0	(1,055)	0	0
ESOP shares earned	761		28	0	733	0
Ending Balance at Sep. 30, 2014	181,276	211	193,674	(2,461)	(10,522)	374
Beginning Balance at Dec. 31, 2014	216,121	211	193,845	31,584	(10,276)	757
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	6,559	0	0	6,559	0	0
Other comprehensive income, net of tax effects	(151)	0	0	0	0	(151)
Stock Repurchased During Period, Value	(7,388)	(6)	(7,382)
Nonvested stock awards-stock-based compensation expense	351	0	351	0	0	0
Cash dividends declared on common stock (2014: $0.05, 2015: $0.16, per share)	3,328			3,328
ESOP shares earned	910	0	178	0	732	0
Ending Balance at Sep. 30, 2015	$ 213,074	$ 205	$ 186,992	$ 34,815	$ (9,544)	$ 606

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Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 10,081	$ 11,990
Preferred Stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized	25,000,000	25,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value (usd per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	20,501,966	21,101,966

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Amounts reported in earnings per share reflect earnings available to common stockholders for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned ESOP shares and unvested restricted stock shares. Stock options and restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent that they would have a dilutive effect if converted to common stock.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income available to common stockholders	$	2,349		$	3,590		$	6,559		$	5,936
Average common shares outstanding	20,501,966			21,101,966			20,803,065			21,101,966
Less:
Unearned ESOP shares	(768,327		)	(866,193		)	(792,551		)	(926,705		)
Unvested restricted stock shares	(7,932		)	(16,822		)	(11,425		)	(20,349		)
Weighted average common shares outstanding	19,725,707			20,218,951			19,999,089			20,154,912
Add - Net effect of dilutive stock options and unvested restricted stock	5,595			16,456			5,605			16,052
Diluted weighted average common shares outstanding	19,731,302			20,235,407			20,004,694			20,170,964
Basic earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29
Diluted earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29

Stock options for 1,215,697 shares of common stock were not considered in computing diluted earnings per share for the period ended September 30, 2015 because they were antidilutive.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 26, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Registrant Name	BankFinancial CORP
Entity Central Index Key	0001303942
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		20,501,966
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No

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Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2015
Certificates of deposit	$	76,194	$	—	$	—		$	76,194
Equity mutual fund	500		12		—			512
Mortgage-backed securities - residential	18,944		957		(25		)	19,876
Collateralized mortgage obligations - residential	7,596		49		(10		)	7,635
SBA-guaranteed loan participation certificates	25		—		—			25
	$	103,259	$	1,018	$	(35	)	$	104,242
December 31, 2014
Certificates of deposit	$	86,049	$	—	$	—		$	86,049
Equity mutual fund	500		9		—			509
Mortgage-backed securities - residential	23,433		1,218		(40		)	24,611
Collateralized mortgage obligations - residential	9,936		53		(13		)	9,976
SBA-guaranteed loan participation certificates	29		—		—			29
	$	119,947	$	1,280	$	(53	)	$	121,174

Mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the U.S. government has affirmed its commitment to support. All securities reflected in the preceding table were classified as available-for-sale at September 30, 2015 and December 31, 2014.

The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date, if any, are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	76,194	$	76,194
Equity mutual fund	500		512
Mortgage-backed securities - residential	18,944		19,876
Collateralized mortgage obligations - residential	7,596		7,635
SBA-guaranteed loan participation certificates	25		25
	$	103,259	$	104,242

Sales of securities were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Proceeds	$	—	$	—	$	—	$	3,663
Gross gains	—		—		—		—
Gross losses	—		—		—		7

Securities with unrealized losses not recognized in income are as follows:

	Less than 12 Months				12 Months or More					Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2015
Mortgage-backed securities - residential	$	—	$	—	$	1,743	$	(25	)	$	1,743	$	(25	)
Collateralized mortgage obligations - residential	—		—		1,405		(10		)	1,405		(10		)
	$	—	$	—	$	3,148	$	(35	)	$	3,148	$	(35	)
December 31, 2014
Mortgage-backed securities - residential	$	—	$	—	$	2,126	$	(40	)	$	2,126	$	(40	)
Collateralized mortgage obligations - residential	—		—		1,847		(13		)	1,847		(13		)
	$	—	$	—	$	3,973	$	(53	)	$	3,973	$	(53	)

The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary.

Certain residential mortgage-backed securities and certain collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at September 30, 2015, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs.

Unrealized gains and losses recognized in accumulated other comprehensive income (loss)

The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2015
Certificates of deposit	$	76,194	$	—	$	—		$	76,194
Equity mutual fund	500		12		—			512
Mortgage-backed securities - residential	18,944		957		(25		)	19,876
Collateralized mortgage obligations - residential	7,596		49		(10		)	7,635
SBA-guaranteed loan participation certificates	25		—		—			25
	$	103,259	$	1,018	$	(35	)	$	104,242
December 31, 2014
Certificates of deposit	$	86,049	$	—	$	—		$	86,049
Equity mutual fund	500		9		—			509
Mortgage-backed securities - residential	23,433		1,218		(40		)	24,611
Collateralized mortgage obligations - residential	9,936		53		(13		)	9,976
SBA-guaranteed loan participation certificates	29		—		—			29
	$	119,947	$	1,280	$	(53	)	$	121,174

Amortized cost and fair values of securities

The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date, if any, are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	76,194	$	76,194
Equity mutual fund	500		512
Mortgage-backed securities - residential	18,944		19,876
Collateralized mortgage obligations - residential	7,596		7,635
SBA-guaranteed loan participation certificates	25		25
	$	103,259	$	104,242

Securities with unrealized losses

Securities with unrealized losses not recognized in income are as follows:

	Less than 12 Months				12 Months or More					Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2015
Mortgage-backed securities - residential	$	—	$	—	$	1,743	$	(25	)	$	1,743	$	(25	)
Collateralized mortgage obligations - residential	—		—		1,405		(10		)	1,405		(10		)
	$	—	$	—	$	3,148	$	(35	)	$	3,148	$	(35	)
December 31, 2014
Mortgage-backed securities - residential	$	—	$	—	$	2,126	$	(40	)	$	2,126	$	(40	)
Collateralized mortgage obligations - residential	—		—		1,847		(13		)	1,847		(13		)
	$	—	$	—	$	3,973	$	(53	)	$	3,973	$	(53	)

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Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest and dividend income
Loans, including fees	$ 11,792	$ 11,983	$ 35,451	$ 35,767
Securities	267	283	851	866
Other	88	102	249	303
Total interest income	12,147	12,368	36,551	36,936
Interest expense
Deposits	695	744	2,068	2,327
Borrowings	4	2	8	5
Total interest expense	699	746	2,076	2,332
Net interest income	11,448	11,622	34,475	34,604
Provision for (recovery of) loan losses	(956)	(1,413)	(2,168)	20
Net interest income	12,404	13,035	36,643	34,584
Noninterest income
Deposit service charges and fees	562	527	1,493	1,438
Other fee income	502	563	1,638	1,677
Insurance commissions and annuities income	68	106	217	279
Gain on sale of loans, net	37	39	92	107
Gain (Loss) on Sale of Securities, Net	0	0	0	(7)
Gain (Loss) on Disposition of Property	0	0	(1)	5
Loan servicing fees	85	102	271	310
Amortization and impairment of servicing assets	(50)	(32)	(107)	(112)
Bank Owned Life Insurance Income	48	57	142	182
Trust	172	171	529	505
Other	285	215	660	556
Total noninterest income	1,709	1,748	4,934	4,940
Noninterest expense
Compensation and benefits	5,329	5,492	16,188	17,046
Office occupancy and equipment	1,537	1,687	4,902	5,227
Advertising and public relations	212	272	783	741
Information technology	686	674	1,982	2,004
Supplies, telephone, and postage	393	394	1,189	1,169
Amortization of intangibles	136	143	414	435
Nonperforming asset management	244	418	442	619
Operations of other real estate owned	334	494	780	1,160
FDIC insurance premiums	202	208	699	1,157
Other	1,159	1,375	3,397	3,952
Total noninterest expense	10,232	11,157	30,776	33,510
Income (loss) before income taxes	3,881	3,626	10,801	6,014
Income tax expense (benefit)	1,532	36	4,242	78
Net income (loss)	$ 2,349	$ 3,590	$ 6,559	$ 5,936
Basic earnings per common share (usd per share)	$ 0.12	$ 0.17	$ 0.33	$ 0.29
Diluted loss per common share (usd per share)	$ 0.12	$ 0.17	$ 0.33	$ 0.29
Weighted average common shares outstanding (shares)	19,725,707	20,218,951	19,999,089	20,154,912
Diluted weighted average common shares outstanding (shares)	19,731,302	20,235,407	20,004,694	20,170,964

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Securities (Notes)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

SECURITIES

The fair value of securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income are shown below:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2015
Certificates of deposit	$	76,194	$	—	$	—		$	76,194
Equity mutual fund	500		12		—			512
Mortgage-backed securities - residential	18,944		957		(25		)	19,876
Collateralized mortgage obligations - residential	7,596		49		(10		)	7,635
SBA-guaranteed loan participation certificates	25		—		—			25
	$	103,259	$	1,018	$	(35	)	$	104,242
December 31, 2014
Certificates of deposit	$	86,049	$	—	$	—		$	86,049
Equity mutual fund	500		9		—			509
Mortgage-backed securities - residential	23,433		1,218		(40		)	24,611
Collateralized mortgage obligations - residential	9,936		53		(13		)	9,976
SBA-guaranteed loan participation certificates	29		—		—			29
	$	119,947	$	1,280	$	(53	)	$	121,174

Mortgage-backed securities and collateralized mortgage obligations reflected in the preceding table were issued by U.S. government-sponsored entities or agencies, Freddie Mac, Fannie Mae and Ginnie Mae, and are obligations which the U.S. government has affirmed its commitment to support. All securities reflected in the preceding table were classified as available-for-sale at September 30, 2015 and December 31, 2014.

The amortized cost and fair values of securities by contractual maturity are shown below. Securities not due at a single maturity date, if any, are shown separately. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	76,194	$	76,194
Equity mutual fund	500		512
Mortgage-backed securities - residential	18,944		19,876
Collateralized mortgage obligations - residential	7,596		7,635
SBA-guaranteed loan participation certificates	25		25
	$	103,259	$	104,242

Sales of securities were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Proceeds	$	—	$	—	$	—	$	3,663
Gross gains	—		—		—		—
Gross losses	—		—		—		7

Securities with unrealized losses not recognized in income are as follows:

	Less than 12 Months				12 Months or More					Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2015
Mortgage-backed securities - residential	$	—	$	—	$	1,743	$	(25	)	$	1,743	$	(25	)
Collateralized mortgage obligations - residential	—		—		1,405		(10		)	1,405		(10		)
	$	—	$	—	$	3,148	$	(35	)	$	3,148	$	(35	)
December 31, 2014
Mortgage-backed securities - residential	$	—	$	—	$	2,126	$	(40	)	$	2,126	$	(40	)
Collateralized mortgage obligations - residential	—		—		1,847		(13		)	1,847		(13		)
	$	—	$	—	$	3,973	$	(53	)	$	3,973	$	(53	)

The Company evaluates marketable investment securities with significant declines in fair value on a quarterly basis to determine whether they should be considered other-than-temporarily impaired under current accounting guidance, which generally provides that if a marketable security is in an unrealized loss position, whether due to general market conditions or industry or issuer-specific factors, the holder of the securities must assess whether the impairment is other-than-temporary.

Certain residential mortgage-backed securities and certain collateralized mortgage obligations that the Company holds in its investment portfolio were in an unrealized loss position at September 30, 2015, but the unrealized losses were not considered significant under the Company’s impairment testing methodology. In addition, the Company does not intend to sell these securities, and it is likely that the Company will not be required to sell these securities before their anticipated recovery occurs.

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Earnings Per Share (Notes)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Amounts reported in earnings per share reflect earnings available to common stockholders for the period divided by the weighted average number of shares of common stock outstanding during the period, exclusive of unearned ESOP shares and unvested restricted stock shares. Stock options and restricted stock are regarded as potential common stock and are considered in the diluted earnings per share calculations to the extent that they would have a dilutive effect if converted to common stock.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income available to common stockholders	$	2,349		$	3,590		$	6,559		$	5,936
Average common shares outstanding	20,501,966			21,101,966			20,803,065			21,101,966
Less:
Unearned ESOP shares	(768,327		)	(866,193		)	(792,551		)	(926,705		)
Unvested restricted stock shares	(7,932		)	(16,822		)	(11,425		)	(20,349		)
Weighted average common shares outstanding	19,725,707			20,218,951			19,999,089			20,154,912
Add - Net effect of dilutive stock options and unvested restricted stock	5,595			16,456			5,605			16,052
Diluted weighted average common shares outstanding	19,731,302			20,235,407			20,004,694			20,170,964
Basic earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29
Diluted earnings per common share	$	0.12		$	0.17		$	0.33		$	0.29

Stock options for 1,215,697 shares of common stock were not considered in computing diluted earnings per share for the period ended September 30, 2015 because they were antidilutive.

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Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Amortized cost and fair values of securities
Due in one year or less, amortized cost	$ 76,194
Due in one year or less, fair value	76,194
Total amortized cost	103,259	$ 119,947
Total Fair value	104,242	121,174
Equity mutual fund [Member]
Amortized cost and fair values of securities
Total amortized cost	500	500
Total Fair value	512	509
Mortgage - backed securities - residential [Member]
Amortized cost and fair values of securities
Total amortized cost	18,944	23,433
Total Fair value	19,876	24,611
Collateralized mortgage obligations - residential [Member]
Amortized cost and fair values of securities
Total amortized cost	7,596	9,936
Total Fair value	7,635	9,976
SBA-guaranteed loan participation certificates [Member]
Amortized cost and fair values of securities
Total amortized cost	25	29
Total Fair value	$ 25	$ 29

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Loans Receivable (Tables) - loan

3 Months Ended

9 Months Ended

Sep. 30, 2015

Sep. 30, 2015

Sep. 30, 2014

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Loans receivable are as follows:

	September 30, 2015			December 31, 2014
One-to-four family residential real estate	$	164,124		$	180,337
Multi-family mortgage	478,057			480,349
Nonresidential real estate	223,528			234,500
Construction and land	1,322			1,885
Commercial loans	80,216			66,882
Commercial leases	221,622			217,143
Consumer	1,927			2,051
	1,170,796			1,183,147
Net deferred loan origination costs	1,583			1,199
Allowance for loan losses	(10,081		)	(11,990		)
Loans, net	$	1,162,298		$	1,172,356

The following tables present the balance in the allowance for loan losses and loans receivable by portfolio segment and based on impairment method:

	Allowance for loan losses						Loan Balances
	Individually evaluated  for impairment		Collectively evaluated  for impairment		Total		Individually evaluated  for impairment		Collectively evaluated  for impairment		Total
September 30, 2015
One-to-four family residential real estate	$	—	$	1,601	$	1,601	$	3,353	$	160,771	$	164,124
Multi-family mortgage	3		3,885		3,888		3,487		474,570		478,057
Nonresidential real estate	66		2,629		2,695		4,097		219,431		223,528
Construction and land	—		74		74		—		1,322		1,322
Commercial loans	17		772		789		75		80,141		80,216
Commercial leases	—		1,006		1,006		—		221,622		221,622
Consumer	—		28		28		—		1,927		1,927
	$	86	$	9,995	$	10,081	$	11,012	$	1,159,784	1,170,796
Net deferred loan origination costs											1,583
Allowance for loan losses											(10,081		)
Loans, net											$	1,162,298

	Allowance for loan losses						Loan Balances
	Individually evaluated  for impairment		Collectively evaluated  for impairment		Total		Individually evaluated  for impairment		Collectively evaluated  for impairment		Total
December 31, 2014
One-to-four family residential real estate	$	8	$	2,140	$	2,148	$	4,174	$	176,163	$	180,337
Multi-family mortgage	226		4,979		5,205		5,282		475,067		480,349
Nonresidential real estate	236		2,704		2,940		4,690		229,810		234,500
Construction and land	—		80		80		—		1,885		1,885
Commercial loans	—		554		554		76		66,806		66,882
Commercial leases	—		1,009		1,009		—		217,143		217,143
Consumer	—		54		54		—		2,051		2,051
	$	470	$	11,520	$	11,990	$	14,222	$	1,168,925	1,183,147
Net deferred loan origination costs											1,199
Allowance for loan losses											(11,990		)
Loans, net											$	1,172,356

Activity in the allowance for loan losses is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Beginning balance	$	10,810		$	14,452		$	11,990		$	14,154
Loans charged off:
One-to-four family residential real estate	(125		)	(298		)	(327		)	(644		)
Multi-family mortgage	(9		)	(97		)	(189		)	(781		)
Nonresidential real estate	(26		)	(695		)	(289		)	(1,461		)
Construction and land	—			—			—			(1		)
Commercial loans	—			(78		)	(98		)	(100		)
Commercial leases	—			(8		)	—			(8		)
Consumer	(3		)	—			(11		)	(10		)
	(163		)	(1,176		)	(914		)	(3,005		)
Recoveries:
One-to-four family residential real estate	16			26			295			134
Multi-family mortgage	169			11			177			31
Nonresidential real estate	24			116			49			400
Construction and land	38			29			44			287
Commercial loans	143			1,005			606			1,027
Commercial leases	—			—			1			—
Consumer	—			1			1			3
	390			1,188			1,173			1,882
Net recoveries (charge-offs)	227			12			259			(1,123		)
Provision for (recovery of) loan losses	(956		)	(1,413		)	(2,168		)	20
Ending balance	$	10,081		$	13,051		$	10,081		$	13,051

The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans:

	Loan Balance		Recorded Investment		Loans Past Due Over 90 Days, Still Accruing
September 30, 2015
One-to-four family residential real estate	$	3,139	$	2,539	$	—
One-to-four family residential real estate – non owner occupied	359		413		—
Multi-family mortgage	1,482		1,399		—
Nonresidential real estate	2,575		2,263		—
Commercial loans – secured	76		75		—
	$	7,631	$	6,689	$	—
December 31, 2014
One-to-four family residential real estate	$	4,793	$	4,210	$	—
One-to-four family residential real estate – non owner occupied	291		198		—
Multi-family mortgage	5,638		4,481		—
Nonresidential real estate	4,023		3,245		—
Commercial loans – secured	76		76		—
Consumer	3		3		—
	$	14,824	$	12,213	$	—

Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The Company’s reserve for uncollected loan interest was $275,000 and $464,000 at September 30, 2015 and December 31, 2014, respectively. When a loan is on non-accrual status and the ultimate collectability of the total principal of the loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on non-accrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method pursuant to the provisions of FASB ASC 310–10, as applicable. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported pursuant to the provisions of FASB ASC 310–10, as applicable.

The following tables present the aging of the recorded investment of loans at September 30, 2015 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
One-to-four family residential real estate	$	61	$	376	$	2,272	$	2,709	$	117,063	$	119,772
One-to-four family residential real estate - non-owner occupied	3		—		413		416		43,895		44,311
Multi-family mortgage	517		178		882		1,577		317,154		318,731
Wholesale commercial lending	—		399		—		399		156,295		156,694
Nonresidential real estate	—		—		2,262		2,262		219,879		222,141
Construction	—		—		—		—		31		31
Land	—		—		—		—		1,289		1,289
Commercial loans:
Secured	—		—		75		75		22,731		22,806
Unsecured	—		—		—		—		3,217		3,217
Municipal	—		—		—		—		1,610		1,610
Warehouse lines	—		—		—		—		15,406		15,406
Health care	—		—		—		—		20,030		20,030
Aviation	—		—		—		—		1,023		1,023
Other	—		—		—		—		16,425		16,425
Commercial leases:
Investment rated commercial leases	—		20		—		20		159,008		159,028
Below investment grade	—		—		—		—		7,377		7,377
Non-rated	—		86		—		86		46,341		46,427
Lease pools	—		—		—		—		10,257		10,257
Consumer	—		—		—		—		1,935		1,935
	$	581	$	1,059	$	5,904	$	7,544	$	1,160,966	$	1,168,510

The following tables present the aging of the recorded investment of loans at December 31, 2014 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
One-to-four family residential real estate	$	1,415	$	276	$	3,844	$	5,535	$	126,054	$	131,589
One-to-four family residential real estate - non-owner occupied	320		165		198		683		47,350		48,033
Multi-family mortgage	2,314		1,187		3,363		6,864		334,173		341,037
Wholesale commercial lending	—		—		—		—		135,395		135,395
Nonresidential real estate	376		444		3,245		4,065		227,078		231,143
Construction	—		—		—		—		63		63
Land	—		—		—		—		1,814		1,814
Commercial loans:
Secured	—		—		76		76		11,863		11,939
Unsecured	—		1		—		1		1,884		1,885
Municipal	—		—		—		—		2,243		2,243
Warehouse lines	—		—		—		—		14,362		14,362
Health care	—		—		—		—		24,154		24,154
Aviation	—		—		—		—		1,111		1,111
Other	—		—		—		—		11,339		11,339
Commercial leases:
Investment rated commercial leases	426		—		—		426		160,830		161,256
Below investment grade	136		—		—		136		11,246		11,382
Non-rated	8		—		—		8		35,672		35,680
Lease pools	—		—		—		—		10,180		10,180
Consumer	18		1		3		22		2,038		2,060
	$	5,013	$	2,074	$	10,729	$	17,816	$	1,158,849	$	1,176,665

The Company evaluates loan extensions or modifications in accordance with FASB ASC 310–40 with respect to the classification of the loan as a TDR. In general, if the Company grants a loan extension or modification to a borrower for other than an insignificant period of time that includes a below–market interest rate, principal forgiveness, payment forbearance or other concession intended to minimize the economic loss to the Company, the loan extension or loan modification is classified as a TDR. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal then due and payable, management measures any impairment on the restructured loan in the same manner as for impaired loans as noted above.

The Company had $3.0 million of TDRs at September 30, 2015 and December 31, 2014. There were no specific valuation reserves allocated to those loans at September 30, 2015 and $38,000 in specific valuation reserves were allocated at December 31, 2014. The Company had no outstanding commitments to borrowers whose loans were classified as TDRs at either date.

The following table presents loans classified as TDRs:

	September 30, 2015		December 31, 2014
One-to-four family residential real estate	$	1,657	$	1,917
Multi-family mortgage	1,126		510
Troubled debt restructured loans – accrual loans	2,783		2,427
One-to-four family residential real estate	208		230
Multi-family mortgage	—		346
Troubled debt restructured loans – nonaccrual loans	208		576
Total troubled debt restructured loans	$	2,991	$	3,003

During the three and nine months ending September 30, 2015 and 2014, the terms of certain loans were modified and classified as TDRs. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

The following tables present TDR activity:

	Three Months Ended September 30,
	2015					2014
	Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment		Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment
One-to-four family residential real estate	5	$	338	$	211	1	$	345	$	345
Commercial loans - secured	—	—		—		1	210		5
Total	5	$	338	$	211	2	$	555	$	350

	Due to reduction in interest rate		Due to extension of maturity date		Due to permanent reduction in recorded investment		Total
For the Three Months Ended September 30, 2015
One-to-four family residential real estate	$	—	$	79	$	132	$	211
For the Three Months Ended September 30, 2014
One-to-four family residential real estate	$	—	$	345	$	—	$	345
Commercial loans - secured	—		—		5		5
Total	$	—	$	345	$	5	$	350

The TDRs described above had no impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in charge-offs of $127,000 for the three months ended September 30, 2015. The TDRs had no impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in $205,000 of charge-offs for the three months ended September 30, 2014.

	Nine Months Ended September 30,
	2015					2014
	Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment		Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment
One-to-four family residential real estate	6	$	401	$	274	4	$	485	$	444
Commercial loans - secured	—	—		—		1	210		5
Total	6	$	401	$	274	5	$	695	$	449

	Due to reduction in interest rate		Due to extension of maturity date		Due to permanent reduction in recorded investment		Total
For the Nine Months Ended September 30, 2015
One-to-four family residential real estate	$	—	$	142	$	132	$	274
For the Nine Months Ended September 30, 2014
One-to-four family residential real estate	$	19	$	373	$	52	$	444
Commercial loans - secured	—		—		5		5
Total	$	19	$	373	$	57	$	449

The TDRs described above had no material impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in $127,000 of charge-offs for the nine months ended September 30, 2015. The TDRs decreased interest income by $1,000, resulted in no change to the allowance for loan losses allocated and resulted in charge-offs of $246,000 for the nine months ended September 30, 2014.

The following table presents TDRs for which there was a payment default during the nine months ending September 30, 2015 and 2014 within twelve months following the modification.

	2015			2014
	Number of loans	Recorded investment		Number of loans	Recorded investment
One-to-four family residential real estate	1	$	27	1	$	28

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

The TDRs for which there was a payment default resulted in no change to the allowance for loan losses allocated and resulted in no charge-offs during the nine months ending September 30, 2015 and September 30, 2014.

There were certain other loan modifications during the three and nine months ending September 30, 2015 and 2014 that did not meet the definition of a TDR. These loans had a total recorded investment of $2.6 million and $1.6 million at September 30, 2015 and 2014, respectively. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans based on credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings:

Special Mention. A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans categorized as Substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. The risk rating guidance published by the Office of the Comptroller of the Currency clarifies that a loan with a well-defined weakness does not have to present a probability of default for the loan to be rated Substandard, and that an individual loan’s loss potential does not have to be distinct for the loan to be rated Substandard.

Nonaccrual. An asset classified as Nonaccrual has all the weaknesses inherent in one classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered “Pass” rated loans.

As of September 30, 2015, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Special Mention		Substandard		Nonaccrual		Total
One-to-four family residential real estate	$	117,242	$	—	$	429	$	2,114	$	119,785
One-to-four family residential real estate - non-owner occupied	43,705		223		—		411		44,339
Multi-family mortgage	312,554		456		5,741		1,404		320,155
Wholesale commercial lending	157,389		—		513		—		157,902
Nonresidential real estate	197,920		18,065		5,259		2,284		223,528
Construction	31		—		—		—		31
Land	472		—		819		—		1,291
Commercial loans:
Secured	22,509		—		148		75		22,732
Unsecured	2,651		—		555		—		3,206
Municipal	1,599		—		—		—		1,599
Warehouse lines	16,369		—		—		—		16,369
Health care	19,995		—		—		—		19,995
Aviation	1,021		—		—		—		1,021
Other	15,294		—		—		—		15,294
Commercial leases:
Investment rated commercial leases	157,893		—		—		—		157,893
Below investment grade	7,336		—		—		—		7,336
Non-rated	46,175		—		—		—		46,175
Lease pools	10,218		—		—		—		10,218
Consumer	1,927		—		—		—		1,927
Total	$	1,132,300	$	18,744	$	13,464	$	6,288	$	1,170,796

As of December 31, 2014, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Special Mention		Substandard		Nonaccrual		Total
One-to-four family residential real estate	$	126,102	$	615	$	1,046	$	4,228	$	131,991
One-to-four family residential real estate - non-owner occupied	46,253		931		964		198		48,346
Multi-family mortgage	336,557		609		3,430		4,515		345,111
Wholesale commercial lending	134,719		—		519		—		135,238
Nonresidential real estate	223,385		1,170		6,698		3,247		234,500
Construction	60		—		—		—		60
Land	1,212		—		613		—		1,825
Commercial loans:
Secured	11,863		—		7		76		11,946
Unsecured	1,147		40		698		—		1,885
Municipal	2,213		—		—		—		2,213
Warehouse lines	11,296		—		—		—		11,296
Health care	24,127		—		—		—		24,127
Aviation	1,108		—		—		—		1,108
Other	14,307		—		—		—		14,307
Commercial leases:
Investment rated commercial leases	160,208		—		—		—		160,208
Below investment grade	11,309		—		—		—		11,309
Non-rated	35,473		—		—		—		35,473
Lease pools	10,153		—		—		—		10,153
Consumer	2,048		—		—		3		2,051
Total	$	1,153,540	$	3,365	$	13,975	$	12,267	$	1,183,147

Loans receivable

Loans receivable are as follows:

	September 30, 2015			December 31, 2014
One-to-four family residential real estate	$	164,124		$	180,337
Multi-family mortgage	478,057			480,349
Nonresidential real estate	223,528			234,500
Construction and land	1,322			1,885
Commercial loans	80,216			66,882
Commercial leases	221,622			217,143
Consumer	1,927			2,051
	1,170,796			1,183,147
Net deferred loan origination costs	1,583			1,199
Allowance for loan losses	(10,081		)	(11,990		)
Loans, net	$	1,162,298		$	1,172,356

Allowance for loan losses and the loans receivable by portfolio segment

The following tables present the balance in the allowance for loan losses and loans receivable by portfolio segment and based on impairment method:

	Allowance for loan losses						Loan Balances
	Individually evaluated  for impairment		Collectively evaluated  for impairment		Total		Individually evaluated  for impairment		Collectively evaluated  for impairment		Total
September 30, 2015
One-to-four family residential real estate	$	—	$	1,601	$	1,601	$	3,353	$	160,771	$	164,124
Multi-family mortgage	3		3,885		3,888		3,487		474,570		478,057
Nonresidential real estate	66		2,629		2,695		4,097		219,431		223,528
Construction and land	—		74		74		—		1,322		1,322
Commercial loans	17		772		789		75		80,141		80,216
Commercial leases	—		1,006		1,006		—		221,622		221,622
Consumer	—		28		28		—		1,927		1,927
	$	86	$	9,995	$	10,081	$	11,012	$	1,159,784	1,170,796
Net deferred loan origination costs											1,583
Allowance for loan losses											(10,081		)
Loans, net											$	1,162,298

Allowance for loan losses

ctivity in the allowance for loan losses is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Beginning balance	$	10,810		$	14,452		$	11,990		$	14,154
Loans charged off:
One-to-four family residential real estate	(125		)	(298		)	(327		)	(644		)
Multi-family mortgage	(9		)	(97		)	(189		)	(781		)
Nonresidential real estate	(26		)	(695		)	(289		)	(1,461		)
Construction and land	—			—			—			(1		)
Commercial loans	—			(78		)	(98		)	(100		)
Commercial leases	—			(8		)	—			(8		)
Consumer	(3		)	—			(11		)	(10		)
	(163		)	(1,176		)	(914		)	(3,005		)
Recoveries:
One-to-four family residential real estate	16			26			295			134
Multi-family mortgage	169			11			177			31
Nonresidential real estate	24			116			49			400
Construction and land	38			29			44			287
Commercial loans	143			1,005			606			1,027
Commercial leases	—			—			1			—
Consumer	—			1			1			3
	390			1,188			1,173			1,882
Net recoveries (charge-offs)	227			12			259			(1,123		)
Provision for (recovery of) loan losses	(956		)	(1,413		)	(2,168		)	20
Ending balance	$	10,081		$	13,051		$	10,081		$	13,051

Schedule of Financing Receivables, Non Accrual Status

The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans:

	Loan Balance		Recorded Investment		Loans Past Due Over 90 Days, Still Accruing
September 30, 2015
One-to-four family residential real estate	$	3,139	$	2,539	$	—
One-to-four family residential real estate – non owner occupied	359		413		—
Multi-family mortgage	1,482		1,399		—
Nonresidential real estate	2,575		2,263		—
Commercial loans – secured	76		75		—
	$	7,631	$	6,689	$	—
December 31, 2014
One-to-four family residential real estate	$	4,793	$	4,210	$	—
One-to-four family residential real estate – non owner occupied	291		198		—
Multi-family mortgage	5,638		4,481		—
Nonresidential real estate	4,023		3,245		—
Commercial loans – secured	76		76		—
Consumer	3		3		—
	$	14,824	$	12,213	$	—

Past Due Financing Receivables

The following tables present the aging of the recorded investment of loans at September 30, 2015 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
One-to-four family residential real estate	$	61	$	376	$	2,272	$	2,709	$	117,063	$	119,772
One-to-four family residential real estate - non-owner occupied	3		—		413		416		43,895		44,311
Multi-family mortgage	517		178		882		1,577		317,154		318,731
Wholesale commercial lending	—		399		—		399		156,295		156,694
Nonresidential real estate	—		—		2,262		2,262		219,879		222,141
Construction	—		—		—		—		31		31
Land	—		—		—		—		1,289		1,289
Commercial loans:
Secured	—		—		75		75		22,731		22,806
Unsecured	—		—		—		—		3,217		3,217
Municipal	—		—		—		—		1,610		1,610
Warehouse lines	—		—		—		—		15,406		15,406
Health care	—		—		—		—		20,030		20,030
Aviation	—		—		—		—		1,023		1,023
Other	—		—		—		—		16,425		16,425
Commercial leases:
Investment rated commercial leases	—		20		—		20		159,008		159,028
Below investment grade	—		—		—		—		7,377		7,377
Non-rated	—		86		—		86		46,341		46,427
Lease pools	—		—		—		—		10,257		10,257
Consumer	—		—		—		—		1,935		1,935
	$	581	$	1,059	$	5,904	$	7,544	$	1,160,966	$	1,168,510

Recorded Investment In Past Due Purchased Impaired Loans

Troubled Debt Restructurings on Financing Receivables

The following table presents loans classified as TDRs:

	September 30, 2015		December 31, 2014
One-to-four family residential real estate	$	1,657	$	1,917
Multi-family mortgage	1,126		510
Troubled debt restructured loans – accrual loans	2,783		2,427
One-to-four family residential real estate	208		230
Multi-family mortgage	—		346
Troubled debt restructured loans – nonaccrual loans	208		576
Total troubled debt restructured loans	$	2,991	$	3,003

Loans By Class Modified As Troubled Debt Restructuring On Financing Receivables

The following tables present TDR activity:

	Three Months Ended September 30,
	2015					2014
	Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment		Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment
One-to-four family residential real estate	5	$	338	$	211	1	$	345	$	345
Commercial loans - secured	—	—		—		1	210		5
Total	5	$	338	$	211	2	$	555	$	350

	Due to reduction in interest rate		Due to extension of maturity date		Due to permanent reduction in recorded investment		Total
For the Three Months Ended September 30, 2015
One-to-four family residential real estate	$	—	$	79	$	132	$	211
For the Three Months Ended September 30, 2014
One-to-four family residential real estate	$	—	$	345	$	—	$	345
Commercial loans - secured	—		—		5		5
Total	$	—	$	345	$	5	$	350

Loans By Class Modified As Troubled Debt Restructurings With Payment Default

The following table presents TDRs for which there was a payment default during the nine months ending September 30, 2015 and 2014 within twelve months following the modification.

	2015			2014
	Number of loans	Recorded investment		Number of loans	Recorded investment
One-to-four family residential real estate	1	$	27	1	$	28

Financing Receivable Credit Quality Indicators

As of September 30, 2015, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Special Mention		Substandard		Nonaccrual		Total
One-to-four family residential real estate	$	117,242	$	—	$	429	$	2,114	$	119,785
One-to-four family residential real estate - non-owner occupied	43,705		223		—		411		44,339
Multi-family mortgage	312,554		456		5,741		1,404		320,155
Wholesale commercial lending	157,389		—		513		—		157,902
Nonresidential real estate	197,920		18,065		5,259		2,284		223,528
Construction	31		—		—		—		31
Land	472		—		819		—		1,291
Commercial loans:
Secured	22,509		—		148		75		22,732
Unsecured	2,651		—		555		—		3,206
Municipal	1,599		—		—		—		1,599
Warehouse lines	16,369		—		—		—		16,369
Health care	19,995		—		—		—		19,995
Aviation	1,021		—		—		—		1,021
Other	15,294		—		—		—		15,294
Commercial leases:
Investment rated commercial leases	157,893		—		—		—		157,893
Below investment grade	7,336		—		—		—		7,336
Non-rated	46,175		—		—		—		46,175
Lease pools	10,218		—		—		—		10,218
Consumer	1,927		—		—		—		1,927
Total	$	1,132,300	$	18,744	$	13,464	$	6,288	$	1,170,796

Number Of Loans Default Subsequent Modification

1

1

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation: BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge, Illinois, is the owner of all of the issued and outstanding capital stock of BankFinancial, F.S.B. (the “Bank”).

Principles of Consolidation: The interim unaudited consolidated financial statements include the accounts of and transactions of BankFinancial Corporation, the Bank, and the Bank’s wholly-owned subsidiaries, Financial Assurance Services, Inc. and BF Asset Recovery Corporation (collectively, “the Company”), and reflect all normal and recurring adjustments that are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. All significant intercompany accounts and transactions have been eliminated. The results of operations for the three- and nine-month periods ended September 30, 2015 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015.

Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ.

Reclassifications: Certain reclassifications have been made in the prior period’s financial statements to conform them to the current period’s presentation.

These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission.

Recent Accounti

Basis of Presentation

Basis of Presentation: BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge, Illinois, is the owner of all of the issued and outstanding capital stock of BankFinancial, F.S.B. (the “Bank”).

Principles of Consolidation

Principles of Consolidation: The interim unaudited consolidated financial statements include the accounts of and transactions of BankFinancial Corporation, the Bank, and the Bank’s wholly-owned subsidiaries, Financial Assurance Services, Inc. and BF Asset Recovery Corporation (collectively, “the Company”), and reflect all normal and recurring adjustments that are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. All significant intercompany accounts and transactions have been eliminated. The results of operations for the three- and nine-month periods ended September 30, 2015 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015.

Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

Use of Estimate

Use of Estimates

Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ.

Uncollected Interest Policy

The Company’s reserve for uncollected loan interest was $275,000 and $464,000 at September 30, 2015 and December 31, 2014, respectively. When a loan is on non-accrual status and the ultimate collectability of the total principal of the loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on non-accrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method pursuant to the provisions of FASB ASC 310–10, as applicable. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported pursuant to the provisions of FASB ASC 310–10, as applicable.

Reclassifications

Reclassifications: Certain reclassifications have been made in the prior period’s financial statements to conform them to the current period’s presentation.

These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In January 2014, the FASB amended existing guidance to clarify when a creditor should derecognize a loan receivable and recognize a collateral asset. An in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This amendment is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of this standard did not have a material impact on the Company’s results of operation or financial position.

In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update will become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

In June 2014, the FASB amended existing guidance related to repurchase-to-maturity transactions, repurchase financings, and disclosures (ASU 2014-11, Transfers and Servicing (Topic 860) - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures). These amendments align the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. These amendments require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. These amendments also require expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. These amendments are effective for the first interim or annual period beginning after December 15, 2014. In addition, for public companies, the disclosure for certain transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The adoption of this standard did not have a material effect on the Company’s operating results or financial condition, but an additional disclosure has been added to the financial statements.

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Loans Receivable (Notes)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Loans receivable are as follows:

	September 30, 2015			December 31, 2014
One-to-four family residential real estate	$	164,124		$	180,337
Multi-family mortgage	478,057			480,349
Nonresidential real estate	223,528			234,500
Construction and land	1,322			1,885
Commercial loans	80,216			66,882
Commercial leases	221,622			217,143
Consumer	1,927			2,051
	1,170,796			1,183,147
Net deferred loan origination costs	1,583			1,199
Allowance for loan losses	(10,081		)	(11,990		)
Loans, net	$	1,162,298		$	1,172,356

The following tables present the balance in the allowance for loan losses and loans receivable by portfolio segment and based on impairment method:

	Allowance for loan losses						Loan Balances
	Individually evaluated  for impairment		Collectively evaluated  for impairment		Total		Individually evaluated  for impairment		Collectively evaluated  for impairment		Total
September 30, 2015
One-to-four family residential real estate	$	—	$	1,601	$	1,601	$	3,353	$	160,771	$	164,124
Multi-family mortgage	3		3,885		3,888		3,487		474,570		478,057
Nonresidential real estate	66		2,629		2,695		4,097		219,431		223,528
Construction and land	—		74		74		—		1,322		1,322
Commercial loans	17		772		789		75		80,141		80,216
Commercial leases	—		1,006		1,006		—		221,622		221,622
Consumer	—		28		28		—		1,927		1,927
	$	86	$	9,995	$	10,081	$	11,012	$	1,159,784	1,170,796
Net deferred loan origination costs											1,583
Allowance for loan losses											(10,081		)
Loans, net											$	1,162,298

	Allowance for loan losses						Loan Balances
	Individually evaluated  for impairment		Collectively evaluated  for impairment		Total		Individually evaluated  for impairment		Collectively evaluated  for impairment		Total
December 31, 2014
One-to-four family residential real estate	$	8	$	2,140	$	2,148	$	4,174	$	176,163	$	180,337
Multi-family mortgage	226		4,979		5,205		5,282		475,067		480,349
Nonresidential real estate	236		2,704		2,940		4,690		229,810		234,500
Construction and land	—		80		80		—		1,885		1,885
Commercial loans	—		554		554		76		66,806		66,882
Commercial leases	—		1,009		1,009		—		217,143		217,143
Consumer	—		54		54		—		2,051		2,051
	$	470	$	11,520	$	11,990	$	14,222	$	1,168,925	1,183,147
Net deferred loan origination costs											1,199
Allowance for loan losses											(11,990		)
Loans, net											$	1,172,356

Activity in the allowance for loan losses is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Beginning balance	$	10,810		$	14,452		$	11,990		$	14,154
Loans charged off:
One-to-four family residential real estate	(125		)	(298		)	(327		)	(644		)
Multi-family mortgage	(9		)	(97		)	(189		)	(781		)
Nonresidential real estate	(26		)	(695		)	(289		)	(1,461		)
Construction and land	—			—			—			(1		)
Commercial loans	—			(78		)	(98		)	(100		)
Commercial leases	—			(8		)	—			(8		)
Consumer	(3		)	—			(11		)	(10		)
	(163		)	(1,176		)	(914		)	(3,005		)
Recoveries:
One-to-four family residential real estate	16			26			295			134
Multi-family mortgage	169			11			177			31
Nonresidential real estate	24			116			49			400
Construction and land	38			29			44			287
Commercial loans	143			1,005			606			1,027
Commercial leases	—			—			1			—
Consumer	—			1			1			3
	390			1,188			1,173			1,882
Net recoveries (charge-offs)	227			12			259			(1,123		)
Provision for (recovery of) loan losses	(956		)	(1,413		)	(2,168		)	20
Ending balance	$	10,081		$	13,051		$	10,081		$	13,051

The following tables present the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans:

	Loan Balance		Recorded Investment		Loans Past Due Over 90 Days, Still Accruing
September 30, 2015
One-to-four family residential real estate	$	3,139	$	2,539	$	—
One-to-four family residential real estate – non owner occupied	359		413		—
Multi-family mortgage	1,482		1,399		—
Nonresidential real estate	2,575		2,263		—
Commercial loans – secured	76		75		—
	$	7,631	$	6,689	$	—
December 31, 2014
One-to-four family residential real estate	$	4,793	$	4,210	$	—
One-to-four family residential real estate – non owner occupied	291		198		—
Multi-family mortgage	5,638		4,481		—
Nonresidential real estate	4,023		3,245		—
Commercial loans – secured	76		76		—
Consumer	3		3		—
	$	14,824	$	12,213	$	—

Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, and some may only be included in one category. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The Company’s reserve for uncollected loan interest was $275,000 and $464,000 at September 30, 2015 and December 31, 2014, respectively. When a loan is on non-accrual status and the ultimate collectability of the total principal of the loan is in doubt, all payments are applied to principal under the cost recovery method. Alternatively, when a loan is on non-accrual status but there is doubt concerning only the ultimate collectability of interest, contractual interest is credited to interest income only when received, under the cash basis method pursuant to the provisions of FASB ASC 310–10, as applicable. In all cases, the average balances are calculated based on the month–end balances of the financing receivables within the period reported pursuant to the provisions of FASB ASC 310–10, as applicable.

The following tables present the aging of the recorded investment of loans at September 30, 2015 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
One-to-four family residential real estate	$	61	$	376	$	2,272	$	2,709	$	117,063	$	119,772
One-to-four family residential real estate - non-owner occupied	3		—		413		416		43,895		44,311
Multi-family mortgage	517		178		882		1,577		317,154		318,731
Wholesale commercial lending	—		399		—		399		156,295		156,694
Nonresidential real estate	—		—		2,262		2,262		219,879		222,141
Construction	—		—		—		—		31		31
Land	—		—		—		—		1,289		1,289
Commercial loans:
Secured	—		—		75		75		22,731		22,806
Unsecured	—		—		—		—		3,217		3,217
Municipal	—		—		—		—		1,610		1,610
Warehouse lines	—		—		—		—		15,406		15,406
Health care	—		—		—		—		20,030		20,030
Aviation	—		—		—		—		1,023		1,023
Other	—		—		—		—		16,425		16,425
Commercial leases:
Investment rated commercial leases	—		20		—		20		159,008		159,028
Below investment grade	—		—		—		—		7,377		7,377
Non-rated	—		86		—		86		46,341		46,427
Lease pools	—		—		—		—		10,257		10,257
Consumer	—		—		—		—		1,935		1,935
	$	581	$	1,059	$	5,904	$	7,544	$	1,160,966	$	1,168,510

The following tables present the aging of the recorded investment of loans at December 31, 2014 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
One-to-four family residential real estate	$	1,415	$	276	$	3,844	$	5,535	$	126,054	$	131,589
One-to-four family residential real estate - non-owner occupied	320		165		198		683		47,350		48,033
Multi-family mortgage	2,314		1,187		3,363		6,864		334,173		341,037
Wholesale commercial lending	—		—		—		—		135,395		135,395
Nonresidential real estate	376		444		3,245		4,065		227,078		231,143
Construction	—		—		—		—		63		63
Land	—		—		—		—		1,814		1,814
Commercial loans:
Secured	—		—		76		76		11,863		11,939
Unsecured	—		1		—		1		1,884		1,885
Municipal	—		—		—		—		2,243		2,243
Warehouse lines	—		—		—		—		14,362		14,362
Health care	—		—		—		—		24,154		24,154
Aviation	—		—		—		—		1,111		1,111
Other	—		—		—		—		11,339		11,339
Commercial leases:
Investment rated commercial leases	426		—		—		426		160,830		161,256
Below investment grade	136		—		—		136		11,246		11,382
Non-rated	8		—		—		8		35,672		35,680
Lease pools	—		—		—		—		10,180		10,180
Consumer	18		1		3		22		2,038		2,060
	$	5,013	$	2,074	$	10,729	$	17,816	$	1,158,849	$	1,176,665

The Company evaluates loan extensions or modifications in accordance with FASB ASC 310–40 with respect to the classification of the loan as a TDR. In general, if the Company grants a loan extension or modification to a borrower for other than an insignificant period of time that includes a below–market interest rate, principal forgiveness, payment forbearance or other concession intended to minimize the economic loss to the Company, the loan extension or loan modification is classified as a TDR. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal then due and payable, management measures any impairment on the restructured loan in the same manner as for impaired loans as noted above.

The Company had $3.0 million of TDRs at September 30, 2015 and December 31, 2014. There were no specific valuation reserves allocated to those loans at September 30, 2015 and $38,000 in specific valuation reserves were allocated at December 31, 2014. The Company had no outstanding commitments to borrowers whose loans were classified as TDRs at either date.

The following table presents loans classified as TDRs:

	September 30, 2015		December 31, 2014
One-to-four family residential real estate	$	1,657	$	1,917
Multi-family mortgage	1,126		510
Troubled debt restructured loans – accrual loans	2,783		2,427
One-to-four family residential real estate	208		230
Multi-family mortgage	—		346
Troubled debt restructured loans – nonaccrual loans	208		576
Total troubled debt restructured loans	$	2,991	$	3,003

During the three and nine months ending September 30, 2015 and 2014, the terms of certain loans were modified and classified as TDRs. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan.

The following tables present TDR activity:

	Three Months Ended September 30,
	2015					2014
	Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment		Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment
One-to-four family residential real estate	5	$	338	$	211	1	$	345	$	345
Commercial loans - secured	—	—		—		1	210		5
Total	5	$	338	$	211	2	$	555	$	350

	Due to reduction in interest rate		Due to extension of maturity date		Due to permanent reduction in recorded investment		Total
For the Three Months Ended September 30, 2015
One-to-four family residential real estate	$	—	$	79	$	132	$	211
For the Three Months Ended September 30, 2014
One-to-four family residential real estate	$	—	$	345	$	—	$	345
Commercial loans - secured	—		—		5		5
Total	$	—	$	345	$	5	$	350

The TDRs described above had no impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in charge-offs of $127,000 for the three months ended September 30, 2015. The TDRs had no impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in $205,000 of charge-offs for the three months ended September 30, 2014.

	Nine Months Ended September 30,
	2015					2014
	Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment		Number of loans	Pre- Modification outstanding recorded investment		Post- Modification outstanding recorded investment
One-to-four family residential real estate	6	$	401	$	274	4	$	485	$	444
Commercial loans - secured	—	—		—		1	210		5
Total	6	$	401	$	274	5	$	695	$	449

	Due to reduction in interest rate		Due to extension of maturity date		Due to permanent reduction in recorded investment		Total
For the Nine Months Ended September 30, 2015
One-to-four family residential real estate	$	—	$	142	$	132	$	274
For the Nine Months Ended September 30, 2014
One-to-four family residential real estate	$	19	$	373	$	52	$	444
Commercial loans - secured	—		—		5		5
Total	$	19	$	373	$	57	$	449

The TDRs described above had no material impact on interest income, resulted in no change to the allowance for loan losses allocated and resulted in $127,000 of charge-offs for the nine months ended September 30, 2015. The TDRs decreased interest income by $1,000, resulted in no change to the allowance for loan losses allocated and resulted in charge-offs of $246,000 for the nine months ended September 30, 2014.

The following table presents TDRs for which there was a payment default during the nine months ending September 30, 2015 and 2014 within twelve months following the modification.

	2015			2014
	Number of loans	Recorded investment		Number of loans	Recorded investment
One-to-four family residential real estate	1	$	27	1	$	28

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

The TDRs for which there was a payment default resulted in no change to the allowance for loan losses allocated and resulted in no charge-offs during the nine months ending September 30, 2015 and September 30, 2014.

There were certain other loan modifications during the three and nine months ending September 30, 2015 and 2014 that did not meet the definition of a TDR. These loans had a total recorded investment of $2.6 million and $1.6 million at September 30, 2015 and 2014, respectively. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans based on credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings:

Special Mention. A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans categorized as Substandard continue to accrue interest, but exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. The loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time. The risk rating guidance published by the Office of the Comptroller of the Currency clarifies that a loan with a well-defined weakness does not have to present a probability of default for the loan to be rated Substandard, and that an individual loan’s loss potential does not have to be distinct for the loan to be rated Substandard.

Nonaccrual. An asset classified as Nonaccrual has all the weaknesses inherent in one classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered “Pass” rated loans.

As of September 30, 2015, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Special Mention		Substandard		Nonaccrual		Total
One-to-four family residential real estate	$	117,242	$	—	$	429	$	2,114	$	119,785
One-to-four family residential real estate - non-owner occupied	43,705		223		—		411		44,339
Multi-family mortgage	312,554		456		5,741		1,404		320,155
Wholesale commercial lending	157,389		—		513		—		157,902
Nonresidential real estate	197,920		18,065		5,259		2,284		223,528
Construction	31		—		—		—		31
Land	472		—		819		—		1,291
Commercial loans:
Secured	22,509		—		148		75		22,732
Unsecured	2,651		—		555		—		3,206
Municipal	1,599		—		—		—		1,599
Warehouse lines	16,369		—		—		—		16,369
Health care	19,995		—		—		—		19,995
Aviation	1,021		—		—		—		1,021
Other	15,294		—		—		—		15,294
Commercial leases:
Investment rated commercial leases	157,893		—		—		—		157,893
Below investment grade	7,336		—		—		—		7,336
Non-rated	46,175		—		—		—		46,175
Lease pools	10,218		—		—		—		10,218
Consumer	1,927		—		—		—		1,927
Total	$	1,132,300	$	18,744	$	13,464	$	6,288	$	1,170,796

As of December 31, 2014, based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Special Mention		Substandard		Nonaccrual		Total
One-to-four family residential real estate	$	126,102	$	615	$	1,046	$	4,228	$	131,991
One-to-four family residential real estate - non-owner occupied	46,253		931		964		198		48,346
Multi-family mortgage	336,557		609		3,430		4,515		345,111
Wholesale commercial lending	134,719		—		519		—		135,238
Nonresidential real estate	223,385		1,170		6,698		3,247		234,500
Construction	60		—		—		—		60
Land	1,212		—		613		—		1,825
Commercial loans:
Secured	11,863		—		7		76		11,946
Unsecured	1,147		40		698		—		1,885
Municipal	2,213		—		—		—		2,213
Warehouse lines	11,296		—		—		—		11,296
Health care	24,127		—		—		—		24,127
Aviation	1,108		—		—		—		1,108
Other	14,307		—		—		—		14,307
Commercial leases:
Investment rated commercial leases	160,208		—		—		—		160,208
Below investment grade	11,309		—		—		—		11,309
Non-rated	35,473		—		—		—		35,473
Lease pools	10,153		—		—		—		10,153
Consumer	2,048		—		—		3		2,051
Total	$	1,153,540	$	3,365	$	13,975	$	12,267	$	1,183,147

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Fair Value (Notes)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

• Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

• Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

• Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Securities: The fair values of marketable equity securities are generally determined by quoted prices, in active markets, for each specific security (Level 1). If Level 1 measurement inputs are not available for a marketable equity security, we determine its fair value based on the quoted price of a similar security traded in an active market (Level 2). The fair values of debt securities are generally determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2).

Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Other Real Estate Owned: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Mortgage Servicing Rights: On a quarterly basis, loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. The fair values of mortgage servicing rights are based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2).

The following table sets forth the Company’s financial assets that were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
September 30, 2015
Securities:
Certificates of deposit	$	—	$	76,194	$	—	$	76,194
Equity mutual fund	512		—		—		512
Mortgage-backed securities – residential	—		19,876		—		19,876
Collateralized mortgage obligations – residential	—		7,635		—		7,635
SBA-guaranteed loan participation certificates	—		25		—		25
	$	512	$	103,730	$	—	$	104,242
December 31, 2014
Securities:
Certificates of deposit	$	—	$	86,049	$	—	$	86,049
Equity mutual fund	509		—		—		509
Mortgage-backed securities - residential	—		24,611		—		24,611
Collateralized mortgage obligations – residential	—		9,976		—		9,976
SBA-guaranteed loan participation certificates	—		29		—		29
	$	509	$	120,665	$	—	$	121,174

The following table sets forth the Company’s assets that were measured at fair value on a non-recurring basis:

	Fair Value Measurement Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
September 30, 2015
Impaired loans:
Multi-family mortgage	$	—	$	—	$	230	$	230
Nonresidential real estate	—		—		1,323		1,323
Commercial loans	—		—		58		58
	$	—	$	—	$	1,611	$	1,611
Other real estate owned:
One-to-four family residential real estate	$	—	$	—	$	42	$	42
Multi-family mortgage	—		—		962		962
Nonresidential real estate	—		—		107		107
Land	—		—		749		749
	$	—	$	—	$	1,860	$	1,860
Mortgage servicing rights	$	—	$	297	$	—	$	297
December 31, 2014
Impaired loans:
One-to-four family residential real estate	$	—	$	—	$	70	$	70
Multi-family mortgage	—		—		1,905		1,905
Nonresidential real estate	—		—		2,369		2,369
	$	—	$	—	$	4,344	$	4,344
Other real estate owned:
One-to-four family residential real estate	$	—	$	—	$	55	$	55
Multi-family mortgage	—		—		1,265		1,265
Nonresidential real estate	—		—		126		126
Land	—		—		753		753
	$	—	$	—	$	2,199	$	2,199
Mortgage servicing rights	$	—	$	160	$	—	$	160

Impaired loans, which are measured for impairment using the fair value of the collateral for collateral–dependent loans and have specific valuation allowances, had a carrying amount of $1.7 million and a valuation allowance of $86,000 at September 30, 2015, compared to a carrying amount of $4.8 million and a valuation allowance of $470,000 at December 31, 2014, resulting in a decrease in the provision for loan losses of $384,000 for the nine months endedSeptember 30, 2015, and an increase in the provision for loan losses of $345,000 for the nine months endedSeptember 30, 2014.

Other real estate owned ("OREO"), which is carried at the lower of cost or fair value less costs to sell, had a carrying value of $2.9 million and a valuation allowance of $1.0 million at September 30, 2015, compared to a carrying value of $3.0 million and a valuation allowance of $803,000 at December 31, 2014. There were $467,000 of valuation adjustments of OREO recorded for the nine months endedSeptember 30, 2015, and $392,000 of valuation adjustments of OREO recorded for the nine months endedSeptember 30, 2014.

A pre-tax provision of $2,000 on our mortgage servicing rights portfolio was included in noninterest income for the nine months endedSeptember 30, 2015, compared to a pre-tax provision of $6,000 for the same period in 2014.

The following table presents quantitative information, based on certain empirical data with respect to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2015:

	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Multi-family mortgage loans	$	230	Sales comparison	Comparison between sales and income approaches	10%
			Income approach	Cap Rate	10%
Nonresidential real estate loans	1,323		Sales comparison	Comparison between sales and income approaches	-25.74% to 1.24% (-21%)
			Income approach	Cap Rate	8.5%
Commercial loans	58		Sales comparison	Discount applied to valuation	34.3%
Impaired loans	$	1,611
Other real estate owned:
One-to-four family residential real estate	$	42	Sales comparison	Discount applied to valuation	-0.35% to 2.8% (0.03%)
Multi-family mortgage	962		Sales comparison	Comparison between sales and income approaches	-67.74% to 11.68% (7%)
Nonresidential real estate loans	107		Sales comparison	Comparison between sales and income approaches	58%
Land	749		Sales comparison	Discount applied to valuation	-7.7% to 17.24% (6%)
Other real estate owned	$	1,860

The following table presents quantitative information, based on certain empirical data with respect to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2014:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Impaired loans
One-to-four family residential real estate	$	70	Sales comparison	Discount applied to valuation	4.8%
Multi-family mortgage	1,905		Sales comparison	Comparison between sales and income approaches	-2.1%- 43.7% (41%)
			Income approach	Cap Rate	9.6%-13.8% (10%)
Nonresidential real estate	2,369		Sales comparison	Comparison between sales and income approaches	-2.1%-33.9% (24%)
			Income approach	Cap Rate	10%-11% (10%)
	$	4,344
Other real estate owned
One-to-four family residential real estate	$	55	Sales comparison	Discount applied to valuation	6.3%-7.7% (7%)
Multi-family mortgage	1,265		Sales comparison	Comparison between sales and income approaches	-6.6%-13.5% (0.4%)
Nonresidential real estate	126		Sales comparison	Comparison between sales and income approaches	32.3%
Land	753		Sales comparison	Discount applied to valuation	-21.9%-4.2% (-10%)
	$	2,199

The carrying amount and estimated fair value of financial instruments are as follows:

			Fair Value Measurements at September 30, 2015 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	61,470	$	8,809	$	52,661	$	—	$	61,470
Securities	104,242		512		103,730		—		104,242
Loans receivable, net of allowance for loan losses	1,162,298		—		1,159,706		1,611		1,161,317
FHLBC stock	6,257		—		—		—		N/A
Accrued interest receivable	4,000		—		4,000		—		4,000
Financial liabilities
Noninterest-bearing demand deposits	$	233,192	$	—	$	233,192	$	—	$	233,192
Savings deposits	152,585		—		152,585		—		152,585
NOW and money market accounts	572,860		—		572,860		—		572,860
Certificates of deposit	222,897		—		222,878		—		222,878
Borrowings	18,048		—		18,049		—		18,049
Accrued interest payable	46		—		46		—		46

			Fair Value Measurements at  December 31, 2014 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	59,581	$	9,693	$	49,888	$	—	$	59,581
Securities	121,174		509		120,665		—		121,174
Loans receivable, net of allowance for loan losses	1,172,356		—		1,166,181		4,344		1,170,525
FHLBC stock	6,257		—		—		—		N/A
Accrued interest receivable	3,926		—		3,926		—		3,926
Financial liabilities
Noninterest-bearing demand deposits	$	134,129	$	—	$	134,129	$	—	$	134,129
Savings deposits	154,532		—		154,532		—		154,532
NOW and money market accounts	690,193		—		690,193		—		690,193
Certificates of deposit	232,859		—		232,588		—		232,588
Borrowings	12,921		—		12,908		—		12,908
Accrued interest payable	89		—		89		—		89

For purposes of the above table, the following assumptions were used:

Cash and Cash Equivalents: The estimated fair values for cash and cash equivalents are based on their carrying value due to the short-term nature of these assets.

Loans: The estimated fair value for loans has been determined by calculating the present value of future cash flows based on the current rate the Company would charge for similar loans with similar maturities, applied for an estimated time period until the loan is assumed to be repriced or repaid. The estimated fair values of loans held for sale are based on quoted market prices.

FHLBC Stock: It is not practicable to determine the fair value of FHLBC stock due to the restrictions placed on its transferability.

Deposit Liabilities: The estimated fair value for certificates of deposit has been determined by calculating the present value of future cash flows based on estimates of rates the Company would pay on such deposits, applied for the time period until maturity. The estimated fair values of noninterest-bearing demand, NOW, money market, and savings deposits are assumed to approximate their carrying values as management establishes rates on these deposits at a level that approximates the local market area. Additionally, these deposits can be withdrawn on demand.

Borrowings: The estimated fair values of advances from the FHLBC and notes payable are based on current market rates for similar financing. The estimated fair value of securities sold under agreements to repurchase is assumed to equal its carrying value due to the short-term nature of the liability.

Accrued Interest: The estimated fair values of accrued interest receivable and payable are assumed to equal their carrying value.

Off-Balance-Sheet Instruments: Off-balance-sheet items consist principally of unfunded loan commitments, standby letters of credit, and unused lines of credit. The estimated fair values of unfunded loan commitments, standby letters of credit, and unused lines of credit are not material.

While the above estimates are based on management’s judgment of the most appropriate factors, as of the balance sheet date, there is no assurance that the estimated fair values would have been realized if the assets were disposed of or the liabilities settled at that date, since market values may differ depending on the various circumstances. The estimated fair values would also not apply to subsequent dates.

In addition, other assets and liabilities that are not financial instruments, such as premises and equipment, are not included in the above disclosures.

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Summary of Significant Accounting Policies New Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2015

Text Block [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In January 2014, the FASB amended existing guidance to clarify when a creditor should derecognize a loan receivable and recognize a collateral asset. An in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This amendment is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of this standard did not have a material impact on the Company’s results of operation or financial position.

In May 2014, the FASB issued an update (ASU No. 2014-09, Revenue from Contracts with Customers) creating FASB Topic 606, Revenue from Contracts with Customers. The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update will become effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

In June 2014, the FASB amended existing guidance related to repurchase-to-maturity transactions, repurchase financings, and disclosures (ASU 2014-11, Transfers and Servicing (Topic 860) - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures). These amendments align the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement, which has resulted in outcomes referred to as off-balance-sheet accounting. These amendments require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. These amendments also require expanded disclosures about the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. These amendments are effective for the first interim or annual period beginning after December 15, 2014. In addition, for public companies, the disclosure for certain transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The adoption of this standard did not have a material effect on the Company’s operating results or financial condition, but an additional disclosure has been added to the financial statements.

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Loans Receivable - Past Due Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	$ 581	$ 5,013
Recorded Investment, 60 to 89 Days Past Due	1,059	2,074
Recorded Investment, 90 Days or Greater Past Due	5,904	10,729
Recorded Investment, Total Past Due	7,544	17,816
Recorded Investment, Loans Not Past Due	1,160,966	1,158,849
Recorded investment, total	1,168,510	1,176,665
Consumer Loan [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	18
Recorded Investment, 60 to 89 Days Past Due	0	1
Recorded Investment, 90 Days or Greater Past Due	0	3
Recorded Investment, Total Past Due	0	22
Recorded Investment, Loans Not Past Due	1,935	2,038
Recorded investment, total	1,935	2,060
Commercial Leases Lease Pools [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	10,257	10,180
Recorded investment, total	10,257	10,180
Commercial Leases Non Rated [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	8
Recorded Investment, 60 to 89 Days Past Due	86	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	86	8
Recorded Investment, Loans Not Past Due	46,341	35,672
Recorded investment, total	46,427	35,680
Commercial Leases Below Investment Grade [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	136
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	136
Recorded Investment, Loans Not Past Due	7,377	11,246
Recorded investment, total	7,377	11,382
Commercial Leases Investment Rated [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	426
Recorded Investment, 60 to 89 Days Past Due	20	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	20	426
Recorded Investment, Loans Not Past Due	159,008	160,830
Recorded investment, total	159,028	161,256
Commercial Loans Other [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	16,425	11,339
Recorded investment, total	16,425	11,339
Aviation (Member) [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, Loans Not Past Due	1,023	1,111
Recorded investment, total	1,023	1,111
Commercial Loans Health Care [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	20,030	24,154
Recorded investment, total	20,030	24,154
Commercial Loans Warehouse Lines [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	15,406	14,362
Recorded investment, total	15,406	14,362
Commercial Loans Municipal [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	1,610	2,243
Recorded investment, total	1,610	2,243
Commercial loans - unsecured [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	1
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	1
Recorded Investment, Loans Not Past Due	3,217	1,884
Recorded investment, total	3,217	1,885
Commercial loans - Secured [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	75	76
Recorded Investment, Total Past Due	75	76
Recorded Investment, Loans Not Past Due	22,731	11,863
Recorded investment, total	22,806	11,939
Land Loans [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	1,289	1,814
Recorded investment, total	1,289	1,814
Construction Loans [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	0	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	0	0
Recorded Investment, Loans Not Past Due	31	63
Recorded investment, total	31	63
Commercial Real Estate [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	376
Recorded Investment, 60 to 89 Days Past Due	0	444
Recorded Investment, 90 Days or Greater Past Due	2,262	3,245
Recorded Investment, Total Past Due	2,262	4,065
Recorded Investment, Loans Not Past Due	219,879	227,078
Recorded investment, total	222,141	231,143
Wholesale Commercial Lending [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	0	0
Recorded Investment, 60 to 89 Days Past Due	399	0
Recorded Investment, 90 Days or Greater Past Due	0	0
Recorded Investment, Total Past Due	399	0
Recorded Investment, Loans Not Past Due	156,295	135,395
Recorded investment, total	156,694	135,395
Multi Family Mortgage Loans [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	517	2,314
Recorded Investment, 60 to 89 Days Past Due	178	1,187
Recorded Investment, 90 Days or Greater Past Due	882	3,363
Recorded Investment, Total Past Due	1,577	6,864
Recorded Investment, Loans Not Past Due	317,154	334,173
Recorded investment, total	318,731	341,037
One To Four Family Residential Real Estate Loans Non Owner Occupied [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	3	320
Recorded Investment, 60 to 89 Days Past Due	0	165
Recorded Investment, 90 Days or Greater Past Due	413	198
Recorded Investment, Total Past Due	416	683
Recorded Investment, Loans Not Past Due	43,895	47,350
Recorded investment, total	44,311	48,033
One to Four Family Residential Real Estate Loans [Member]
Recorded investment in nonaccrual and loans past due over 90 days
Recorded Investment, 30 to 59 Days Past Due	61	1,415
Recorded Investment, 60 to 89 Days Past Due	376	276
Recorded Investment, 90 Days or Greater Past Due	2,272	3,844
Recorded Investment, Total Past Due	2,709	5,535
Recorded Investment, Loans Not Past Due	117,063	126,054
Recorded investment, total	$ 119,772	$ 131,589

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share, Basic and Diluted [Abstract]
Net income available to common stockholders	$ 2,349	$ 3,590	$ 6,559	$ 5,936
Average common shares outstanding (shares)	20,501,966	21,101,966	20,803,065	21,101,966
Less:
Unvested restricted stock shares (shares)	7,932	16,822	11,425	20,349
Weighted average common shares outstanding (shares)	19,725,707	20,218,951	19,999,089	20,154,912
Unearned Employee Stock Ownership Plan shares	(768,327)	(866,193)	(792,551)	(926,705)
Add - Net effect of dilutive stock options and unvested restricted stock	5,595	16,456	5,605	16,052
Weighted average diluted common shares outstanding (shares)	19,731,302	20,235,407	20,004,694	20,170,964
Basic earnings per common share (usd per share)	$ 0.12	$ 0.17	$ 0.33	$ 0.29
Diluted earnings (loss) per common share (usd per share)	$ 0.12	$ 0.17	$ 0.33	$ 0.29

XML

Securities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Proceeds and Gross Gains (Losses) from Sale of Securities [Abstract]
Proceeds from Sale of Available-for-sale Securities	$ 0	$ 0	$ 3,663
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 0	$ 0	$ 7

XML

Fair Value - Financial Assets Accounted for at Fair Value (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	$ 1,611,000		$ 4,344,000
Schedule of Company's financial instruments measured at fair values
Total Fair value	104,242,000		121,174,000
Real Estate Acquired Through Foreclosure Fair Value	1,860,000		2,199,000
Certificates of deposit [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	76,194,000		86,049,000
Equity Funds [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	512,000		509,000
Residential Mortgage Backed Securities [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	19,876,000		24,611,000
Collateralized Debt Obligations [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	7,635,000		9,976,000
SBA-guaranteed loan participation certificates [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	25,000		29,000
Nonrecurring [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	1,611,000		4,344,000
Schedule of Company's financial instruments measured at fair values
Total Fair value	104,242,000		121,174,000
Real Estate Acquired Through Foreclosure Fair Value	1,860,000		2,199,000
Servicing Asset at Fair Value, Amount	297,000		160,000
Nonrecurring [Member] | Certificates of deposit [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	76,194,000		86,049,000
Nonrecurring [Member] | Equity mutual fund [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	512,000		509,000
Nonrecurring [Member] | Mortgage-backed securities - residential [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	19,876,000		24,611,000
Nonrecurring [Member] | Collateralized mortgage obligations - residential [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	7,635,000		9,976,000
Nonrecurring [Member] | SBA-guaranteed loan participation certificates [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	25,000		29,000
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0		0
Schedule of Company's financial instruments measured at fair values
Total Fair value	512,000		509,000
Real Estate Acquired Through Foreclosure Fair Value	0		0
Servicing Asset at Fair Value, Amount	0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-backed securities - residential [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Collateralized mortgage obligations - residential [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | SBA-guaranteed loan participation certificates [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0		0
Schedule of Company's financial instruments measured at fair values
Total Fair value	103,730,000		120,665,000
Real Estate Acquired Through Foreclosure Fair Value	0		0
Servicing Asset at Fair Value, Amount	297,000		160,000
Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member] | Equity mutual fund [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	1,611,000		4,344,000
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Real Estate Acquired Through Foreclosure Fair Value	1,860,000		2,199,000
Servicing Asset at Fair Value, Amount	0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity mutual fund [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed securities - residential [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Collateralized mortgage obligations - residential [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | SBA-guaranteed loan participation certificates [Member]
Schedule of Company's financial instruments measured at fair values
Total Fair value	0		0
One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value			70,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value			55,000
One to Four Family Residential Real Estate Loans [Member] | Nonrecurring [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value			70,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	42,000		55,000
One to Four Family Residential Real Estate Loans [Member] | Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value			0
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		0
One to Four Family Residential Real Estate Loans [Member] | Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value			0
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		0
One to Four Family Residential Real Estate Loans [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	42,000
Multi Family Mortgage Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value			1,905,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value			1,265,000
Multi Family Mortgage Loans [Member] | Nonrecurring [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	230,000		1,905,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	962,000		1,265,000
Multi Family Mortgage Loans [Member] | Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0		0
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		0
Multi Family Mortgage Loans [Member] | Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0		0
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		0
Multi Family Mortgage Loans [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	230,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	962,000
Commercial Real Estate [Member] | Nonrecurring [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	1,323,000		2,369,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	107,000		126,000
Commercial Real Estate [Member] | Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0		0
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		0
Commercial Real Estate [Member] | Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0		0
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		0
Commercial Real Estate [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	1,323,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	107,000
Nonresidential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value			2,369,000
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value			126,000
Commercial Loan [Member] | Nonrecurring [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	58,000
Commercial Loan [Member] | Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0
Commercial Loan [Member] | Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	0
Commercial Loan [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired Loan Fair Value	58,000
Land Loans [Member]
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value			753,000
Land Loans [Member] | Nonrecurring [Member]
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	749,000		753,000
Land Loans [Member] | Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		0
Land Loans [Member] | Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	0		$ 0
Land Loans [Member] | Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Schedule of Company's financial instruments measured at fair values
Real Estate Acquired Through Foreclosure Fair Value	$ 749,000
Sales Comparison Valuation Technique [Member] | One to Four Family Residential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description		Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description	Discount applied to valuation	Discount applied to valuation
Sales Comparison Valuation Technique [Member] | Other Real Estate Owned [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Sales comparison
Sales Comparison Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Sales comparison	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description	Comparison between sales and income approaches	Comparison between sales and income approaches
Sales Comparison Valuation Technique [Member] | Commercial Real Estate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Sales comparison	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description	Comparison between sales and income approaches	Comparison between sales and income approaches
Sales Comparison Valuation Technique [Member] | Nonresidential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Sales comparison	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description	Comparison between sales and income approaches	Comparison between sales and income approaches
Sales Comparison Valuation Technique [Member] | Commercial Loan [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description	Discount applied to valuation
Sales Comparison Valuation Technique [Member] | Land Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Sales comparison	Sales comparison
Fair Value Measurements, Sensitivity Analysis, Description	Discount applied to valuation	Discount applied to valuation
Income Approach Valuation Technique [Member] | Multi Family Mortgage Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Income approach	Income approach
Fair Value Measurements, Sensitivity Analysis, Description	Cap Rate	Cap Rate
Income Approach Valuation Technique [Member] | Nonresidential Real Estate Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Processes, Description	Income approach	Income approach
Fair Value Measurements, Sensitivity Analysis, Description	Cap Rate	Cap Rate

XML

Consolidated Statements of Operations Consolidated Statements of Operations (parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Other than Temporary Impairment Losses, Investments, Reclassification Adjustment of Noncredit Portion Included in Net Income, Availabe-for-sale Securities, before Tax	$ 0	$ 0	$ 0	$ 7

XML

Summary of Significant Accounting Policies (Notes)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation: BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge, Illinois, is the owner of all of the issued and outstanding capital stock of BankFinancial, F.S.B. (the “Bank”).

Principles of Consolidation: The interim unaudited consolidated financial statements include the accounts of and transactions of BankFinancial Corporation, the Bank, and the Bank’s wholly-owned subsidiaries, Financial Assurance Services, Inc. and BF Asset Recovery Corporation (collectively, “the Company”), and reflect all normal and recurring adjustments that are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. All significant intercompany accounts and transactions have been eliminated. The results of operations for the three- and nine-month periods ended September 30, 2015 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2015.

Certain information and note disclosures normally included in financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.

Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ.

Reclassifications: Certain reclassifications have been made in the prior period’s financial statements to conform them to the current period’s presentation.

These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission.

Recent Accounti

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Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Loans receivable
Total loans	$ 1,170,796		$ 1,183,147
Net deferred loan origination costs	1,583		1,199
Allowance for loan losses	(10,081)	$ (10,810)	(11,990)	$ (13,051)	$ (14,452)	$ (14,154)
Loans, net	1,162,298		1,172,356
One-to-four family residential real estate loans [Member]
Loans receivable
Total loans	164,124		180,337
Allowance for loan losses	(1,601)		(2,148)
Multi-family mortgage loans [Member]
Loans receivable
Total loans	478,057		480,349
Allowance for loan losses	(3,888)		(5,205)
Nonresidential real estate loans [Member]
Loans receivable
Total loans	223,528		234,500
Allowance for loan losses	(2,695)		(2,940)
Construction and land loans [Member]
Loans receivable
Total loans	1,322		1,885
Allowance for loan losses	(74)		(80)
Commercial loans [Member]
Loans receivable
Total loans	80,216		66,882
Allowance for loan losses	(789)		(554)
Commercial leases [Member]
Loans receivable
Total loans	221,622		217,143
Allowance for loan losses	(1,006)		(1,009)
Consumer loans [Member]
Loans receivable
Total loans	1,927		2,051
Allowance for loan losses	$ (28)		$ (54)

XML

Label	Element	Value
Retained Earnings [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ 3,590
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ 2,349

XML

Loans Receivable - Troubled Debt Restructuring - Payment Defaults (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan	Sep. 30, 2015 USD ($) loan	Sep. 30, 2014 USD ($) loan
Financing Receivable, Modifications [Line Items]
Troubled Debt Restructuring Charge Off			$ 0.0000	$ 0
Troubled Debt Restructuring Charge Off	$ 127,000	$ 205,000		246,000
Financing Receivable Pre Modification Recorded Investment	338,000	555,000	$ 401,000	$ 695,000
Loans by class modified as TDRs with payment default
Number of loans | loan			1	1
Financing Receivable Post Modification Recorded Investment	$ 211,000	$ 350,000	$ 274,000	$ 449,000
Number Of Loans | loan	5	2	6	5
Financing Receivable, Modifications, Subsequent Default, Recorded Investment			$ 27,000	$ 28,000
One-to-four family residential real estate loans [Member]
Financing Receivable, Modifications [Line Items]
Financing Receivable Pre Modification Recorded Investment	$ 338,000	$ 345,000	401,000	485,000
Loans by class modified as TDRs with payment default
Financing Receivable Post Modification Recorded Investment	$ 211,000	$ 345,000	$ 274,000	$ 444,000
Number Of Loans | loan	5	1	6	4

XML

Fair Value (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Company's financial instruments measured at fair values

The following table sets forth the Company’s financial assets that were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
September 30, 2015
Securities:
Certificates of deposit	$	—	$	76,194	$	—	$	76,194
Equity mutual fund	512		—		—		512
Mortgage-backed securities – residential	—		19,876		—		19,876
Collateralized mortgage obligations – residential	—		7,635		—		7,635
SBA-guaranteed loan participation certificates	—		25		—		25
	$	512	$	103,730	$	—	$	104,242
December 31, 2014
Securities:
Certificates of deposit	$	—	$	86,049	$	—	$	86,049
Equity mutual fund	509		—		—		509
Mortgage-backed securities - residential	—		24,611		—		24,611
Collateralized mortgage obligations – residential	—		9,976		—		9,976
SBA-guaranteed loan participation certificates	—		29		—		29
	$	509	$	120,665	$	—	$	121,174

Schedule of Company's financial instruments measured on non recurring at fair values

The following table sets forth the Company’s assets that were measured at fair value on a non-recurring basis:

	Fair Value Measurement Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
September 30, 2015
Impaired loans:
Multi-family mortgage	$	—	$	—	$	230	$	230
Nonresidential real estate	—		—		1,323		1,323
Commercial loans	—		—		58		58
	$	—	$	—	$	1,611	$	1,611
Other real estate owned:
One-to-four family residential real estate	$	—	$	—	$	42	$	42
Multi-family mortgage	—		—		962		962
Nonresidential real estate	—		—		107		107
Land	—		—		749		749
	$	—	$	—	$	1,860	$	1,860
Mortgage servicing rights	$	—	$	297	$	—	$	297
December 31, 2014
Impaired loans:
One-to-four family residential real estate	$	—	$	—	$	70	$	70
Multi-family mortgage	—		—		1,905		1,905
Nonresidential real estate	—		—		2,369		2,369
	$	—	$	—	$	4,344	$	4,344
Other real estate owned:
One-to-four family residential real estate	$	—	$	—	$	55	$	55
Multi-family mortgage	—		—		1,265		1,265
Nonresidential real estate	—		—		126		126
Land	—		—		753		753
	$	—	$	—	$	2,199	$	2,199
Mortgage servicing rights	$	—	$	160	$	—	$	160

Schedule of fair value quantitative information

The following table presents quantitative information, based on certain empirical data with respect to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2015:

	Fair Value		Valuation Technique(s)	Significant Unobservable Input(s)	Range (Weighted Average)
Impaired loans:
Multi-family mortgage loans	$	230	Sales comparison	Comparison between sales and income approaches	10%
			Income approach	Cap Rate	10%
Nonresidential real estate loans	1,323		Sales comparison	Comparison between sales and income approaches	-25.74% to 1.24% (-21%)
			Income approach	Cap Rate	8.5%
Commercial loans	58		Sales comparison	Discount applied to valuation	34.3%
Impaired loans	$	1,611
Other real estate owned:
One-to-four family residential real estate	$	42	Sales comparison	Discount applied to valuation	-0.35% to 2.8% (0.03%)
Multi-family mortgage	962		Sales comparison	Comparison between sales and income approaches	-67.74% to 11.68% (7%)
Nonresidential real estate loans	107		Sales comparison	Comparison between sales and income approaches	58%
Land	749		Sales comparison	Discount applied to valuation	-7.7% to 17.24% (6%)
Other real estate owned	$	1,860

Carrying amount and estimated fair value of financial instruments

The carrying amount and estimated fair value of financial instruments are as follows:

			Fair Value Measurements at September 30, 2015 Using:
	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	61,470	$	8,809	$	52,661	$	—	$	61,470
Securities	104,242		512		103,730		—		104,242
Loans receivable, net of allowance for loan losses	1,162,298		—		1,159,706		1,611		1,161,317
FHLBC stock	6,257		—		—		—		N/A
Accrued interest receivable	4,000		—		4,000		—		4,000
Financial liabilities
Noninterest-bearing demand deposits	$	233,192	$	—	$	233,192	$	—	$	233,192
Savings deposits	152,585		—		152,585		—		152,585
NOW and money market accounts	572,860		—		572,860		—		572,860
Certificates of deposit	222,897		—		222,878		—		222,878
Borrowings	18,048		—		18,049		—		18,049
Accrued interest payable	46		—		46		—		46