EX-99.2 3 bfin-20180930ex992suppleme.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2



BANKFINANCIAL CORPORATION
THIRD QUARTER 2018
QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT
FOR THE LATEST FIVE QUARTERS


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

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (1)
0.97
%
 
1.18
%
 
0.90
%
 
0.24
%
 
0.88
%
Return on equity (ratio of net income to average equity) (1)
7.68

 
9.39

 
7.13

 
1.97

 
7.07

Net interest rate spread (1)
3.30

 
3.31

 
3.38

 
3.26

 
3.10

Net interest margin (1)
3.51

 
3.49

 
3.53

 
3.41

 
3.23

Efficiency ratio
64.84

 
63.55

 
68.40

 
62.37

 
72.19

Noninterest expense to average total assets (1)
2.45

 
2.61

 
2.52

 
2.28

 
2.51

Average interest–earning assets to average interest–bearing liabilities
133.23

 
133.62

 
132.29

 
131.68

 
131.23

Number of full service offices
19

 
19

 
19

 
19

 
19

Employees (full time equivalents) (2)
245

 
250

 
237

 
236

 
238

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
12,473

 
$
11,738

 
$
10,613

 
$
13,572

 
$
10,620

Interest-bearing deposits in other financial institutions
74,461

 
80,457

 
81,963

 
114,020

 
115,041

Securities, at fair value
103,921

 
112,452

 
102,661

 
93,383

 
98,787

Loans receivable, net
1,267,787

 
1,287,823

 
1,277,553

 
1,314,651

 
1,335,631

Other real estate owned, net
985

 
1,187

 
1,802

 
2,351

 
3,569

Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost
8,026

 
8,311

 
8,290

 
8,290

 
8,290

Premises held-for-sale

 

 
5,581

 
5,667

 

Premises and equipment, net
24,473

 
24,441

 
24,628

 
24,856

 
30,774

Intangible assets
123

 
143

 
164

 
286

 
408

Bank owned life insurance
18,781

 
18,746

 
22,925

 
22,859

 
22,790

Deferred taxes
8,911

 
10,199

 
11,363

 
12,563

 
20,214

Other assets
12,543

 
12,001

 
12,386

 
13,060

 
8,145

Total assets
$
1,532,484

 
$
1,567,498

 
$
1,559,929

 
$
1,625,558

 
$
1,654,269

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,295,770

 
$
1,295,853

 
$
1,278,007

 
$
1,340,051

 
$
1,371,089

Borrowings
21,232

 
50,901

 
60,983

 
60,768

 
60,928

Other liabilities
23,399

 
26,516

 
22,587

 
27,105

 
22,474

Total liabilities
1,340,401

 
1,373,270

 
1,361,577

 
1,427,924

 
1,454,491

Stockholders’ equity
192,083

 
194,228

 
198,352

 
197,634

 
199,778

Total liabilities and stockholders’ equity
$
1,532,484

 
$
1,567,498

 
$
1,559,929

 
$
1,625,558

 
$
1,654,269

(1)Annualized
(2)
Second quarter 2018 full time equivalents employees include summer interns. These employees typically work from May through August.


Page 2

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
15,373

 
$
15,020

 
$
14,748

 
$
15,047

 
$
14,121

Total interest expense
2,408

 
2,039

 
1,727

 
1,742

 
1,615

Net interest income before provision (recovery)
12,965

 
12,981

 
13,021

 
13,305

 
12,506

Provision for (recovery of) loan losses
(23
)
 
23

 
(258
)
 
(72
)
 
(225
)
Net interest income
12,988

 
12,958

 
13,279

 
13,377

 
12,731

Noninterest income
1,570

 
3,094

 
1,539

 
1,634

 
1,623

Noninterest expense
9,425

 
10,215

 
9,959

 
9,318

 
10,200

Income before income tax
5,133

 
5,837

 
4,859

 
5,693

 
4,154

Income tax expense (1)
1,396

 
1,207

 
1,300

 
4,702

 
594

Net income
$
3,737

 
$
4,630

 
$
3,559

 
$
991

 
$
3,560

Basic earnings per common share
$
0.22

 
$
0.26

 
$
0.20

 
$
0.06

 
$
0.20

Diluted earnings per common share
$
0.22

 
$
0.26

 
$
0.20

 
$
0.06

 
$
0.20

 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
1,003

 
$
989

 
$
978

 
$
989

 
$
1,018

Loan fee income
71

 
90

 
70

 
114

 
89

Commercial mortgage brokerage fees
12

 
85

 
41

 

 

Residential mortgage banking fees
34

 
24

 
30

 
43

 
41

Loss on sales of equity securities

 
(14
)
 

 

 

Gain on disposition of premises and equipment

 
93

 

 

 

Trust insurance commissions and annuities income
207

 
250

 
213

 
267

 
210

Earnings on bank owned life insurance
35

 
45

 
66

 
69

 
67

Bank-owned life insurance death benefit

 
1,389

 

 

 

Other
208

 
143

 
141

 
152

 
198

Total noninterest income
$
1,570

 
$
3,094

 
$
1,539

 
$
1,634

 
$
1,623

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
5,120

 
$
5,790

 
$
5,322

 
$
4,975

 
$
5,330

Office occupancy and equipment
1,629

 
1,662

 
1,731

 
1,709

 
1,693

Advertising and public relations
194

 
274

 
143

 
197

 
167

Information technology
717

 
708

 
641

 
673

 
638

Supplies, telephone, and postage
341

 
396

 
333

 
339

 
337

Amortization of intangibles
20

 
21

 
122

 
122

 
123

Nonperforming asset management
60

 
51

 
202

 
125

 
84

Loss (gain) on sales of other real estate owned
(12
)
 
47

 
21

 
(55
)
 
69

Valuation adjustments of other real estate owned
1

 
1

 
25

 
32

 
227

Operations of other real estate owned
70

 
87

 
115

 
85

 
107

FDIC insurance premiums
115

 
104

 
119

 
125

 
150

Other
1,170

 
1,074

 
1,185

 
991

 
1,275

Total noninterest expense
$
9,425

 
$
10,215

 
$
9,959

 
$
9,318

 
$
10,200

(1)    2017 Q4 income tax expense includes valuation of $2.5 million related to Tax Cuts and Jobs Act of 2017.

Page 3

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
$
77,591

 
$
84,048

 
$
92,056

 
$
97,814

 
$
105,186

Multi–family mortgage
581,880

 
571,886

 
578,144

 
588,383

 
576,425

Nonresidential real estate
148,010

 
155,627

 
163,856

 
169,971

 
176,301

Construction and land
1,130

 
1,316

 
1,328

 
1,358

 
2,827

Commercial loans
167,547

 
163,925

 
162,564

 
152,552

 
147,079

Commercial leases
297,103

 
316,555

 
285,222

 
310,076

 
333,120

Consumer
1,416

 
1,469

 
1,494

 
1,597

 
1,747

 
1,274,677

 
1,294,826

 
1,284,664

 
1,321,751

 
1,342,685

Net deferred loan origination costs
1,213

 
1,176

 
1,230

 
1,266

 
1,320

Allowance for loan losses
(8,103
)
 
(8,179
)
 
(8,341
)
 
(8,366
)
 
(8,374
)
Loans, net
$
1,267,787

 
$
1,287,823

 
$
1,277,553

 
$
1,314,651

 
$
1,335,631

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
$
1,290

 
$
987

 
$
964

 
$
1,103

 
$
1,654

Multi–family mortgage
31,633

 
21,838

 
14,339

 
26,830

 
40,695

Nonresidential real estate
1,166

 
1,310

 
2,011

 
2,311

 
2,462

Construction and land

 

 

 

 
646

Commercial loans
164,974

 
164,048

 
150,804

 
100,667

 
90,617

Commercial leases
27,296

 
77,744

 
20,771

 
42,700

 
27,199

Consumer
695

 
672

 
584

 
781

 
1,002

 
$
227,054

 
$
266,599

 
$
189,473

 
$
174,392

 
$
164,275

Weighted average rate
5.96
%
 
5.62
%
 
5.61
%
 
5.12
%
 
4.77
%
 

 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)

 
 
 
 
 
 
 
 
One–to–four family residential real estate
$
7,135

 
$
8,959

 
$
6,453

 
$
7,611

 
$
11,931

Multi–family mortgage
19,804

 
27,911

 
24,524

 
14,998

 
19,966

Nonresidential real estate
8,890

 
9,499

 
8,148

 
9,577

 
3,658

Construction and land
184

 
15

 
31

 
31

 
67

Commercial loans
161,359

 
162,544

 
140,449

 
94,996

 
71,481

Commercial leases
46,885

 
47,417

 
45,790

 
65,707

 
57,061

Consumer
762

 
704

 
631

 
732

 
1,159

 
$
245,019

 
$
257,049

 
$
226,026

 
$
193,652

 
$
165,323

Weighted average rate
5.56
%
 
5.28
%
 
4.97
%
 
4.67
%
 
4.30
%

(1)
Loan originations include purchased loans, draws on revolving lines of credit and exclude loan renewals.
(2)
Loan payments and payoffs exclude loan renewals.

Page 4

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
$
1,369

 
$
1,538

 
$
1,589

 
$
2,027

 
$
2,234

Multi–family mortgage
102

 
92

 
369

 
363

 
371

Consumer loans

 
6

 

 

 

Nonaccrual loans
1,471

 
1,636

 
1,958

 
2,390

 
2,605

 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
634

 
833

 
935

 
827

 
1,748

Multi–family real estate
276

 
276

 

 

 

Nonresidential real estate
74

 
74

 
863

 
1,520

 
1,551

Land 
1

 
4

 
4

 
4

 
270

Other real estate owned
985

 
1,187

 
1,802

 
2,351

 
3,569

 
 
 
 
 
 
 
 
 
 
Nonperforming assets
$
2,456

 
$
2,823

 
$
3,760

 
$
4,741

 
$
6,174

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
0.16
%
 
0.18
%
 
0.24
%
 
0.29
%
 
0.37
%
Nonperforming loans to total loans
0.12

 
0.13

 
0.15

 
0.18

 
0.19

Nonperforming commercial-related loans to total commercial-related loans (1)
0.01

 
0.01

 
0.03

 
0.03

 
0.03

Nonperforming residential and consumer loans to total residential and consumer loans
1.73

 
1.81

 
1.70

 
2.04

 
2.09

Allowance for loan losses to nonperforming loans
550.85

 
499.94

 
426.00

 
350.04

 
321.46

 
 
 
 
 
 
 
 
 
 
Concentrations of Credit
 
 
 
 
 
 
 
 
 
Commercial Real Estate for FFIEC Concentration Limits
$
697,843

 
$
694,555

 
$
706,488

 
$
721,587

 
$
723,797

% FFIEC Total Capital
378.64
%
 
378.45
%
 
370.18
%
 
382.64
%
 
392.91
%
 
 
 
 
 
 
 
 
 
 
Multi–family mortgage loans - 50% risk based capital qualified (included above)
$
357,947

 
$
299,138

 
$
353,686

 
$
365,713

 
$
330,181

% FFIEC Total Capital
194.22
%
 
162.99
%
 
185.32
%
 
193.93
%
 
179.24
%
 
 
 
 
 
 
 
 
 
 
Commercial Leases - Investment Grade
$
181,131

 
$
197,746

 
$
186,052

 
$
207,460

 
$
230,931

Commercial Leases - Other
115,972

 
118,809

 
99,170

 
102,616

 
102,189


(1)
Commercial-related loans include Multi-family mortgage, Nonresidential, Construction, Land and Commercial loans and Leases.


Page 5

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
SUBSTANDARD PERFORMING LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
$
409

 
$
295

 
$
362

 
$
295

 
$
297

Multi–family mortgage
310

 
218

 
222

 
225

 
480

Nonresidential real estate
99

 
100

 
149

 
154

 
162

Commercial loans
4,699

 
3,820

 
2,258

 
2,248

 
982

Consumer
10

 
1

 

 

 

 
$
5,527

 
$
4,434

 
$
2,991

 
$
2,922

 
$
1,921

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
8,179

 
$
8,341

 
$
8,366

 
$
8,374

 
$
8,122

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
(84
)
 
(33
)
 
(97
)
 
(36
)
 
(89
)
Multi–family mortgage

 
(35
)
 

 

 
(7
)
Commercial loans

 
(140
)
 

 

 

Consumer
(6
)
 
(1
)
 

 
(3
)
 
(7
)
 
(90
)
 
(209
)
 
(97
)
 
(39
)
 
(103
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
25

 
6

 
99

 
45

 
15

Multi–family mortgage
8

 
10

 
8

 
8

 
11

Nonresidential real estate

 

 

 
7

 
10

Construction and land loans
2

 

 

 

 

Commercial loans
2

 
2

 
223

 
42

 
542

Commercial leases

 
5

 

 

 
2

Consumer

 
1

 

 
1

 

 
37

 
24

 
330

 
103

 
580

Net (charge–offs) recoveries
(53
)
 
(185
)
 
233

 
64

 
477

Provision for (recovery of ) loan losses
(23
)
 
23

 
(258
)
 
(72
)
 
(225
)
Ending balance
$
8,103

 
$
8,179

 
$
8,341

 
$
8,366

 
$
8,374

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
0.64
 %
 
0.63
 %
 
0.65
%
 
0.63
%
 
0.62
%
Net (charge–off) recovery ratio (1)
(0.02
)
 
(0.06
)
 
0.07

 
0.02

 
0.14

(1)
Annualized


Page 6

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
225,446

 
$
229,717

 
$
232,593

 
$
234,354

 
$
231,049

Interest–bearing NOW accounts
283,561

 
281,603

 
283,311

 
289,657

 
283,411

Money market accounts
266,070

 
281,493

 
290,575

 
299,581

 
301,905

Savings deposits
155,232

 
158,731

 
160,093

 
160,501

 
158,696

Certificates of deposits - retail
275,160

 
251,974

 
232,910

 
224,401

 
219,478

Certificates of deposits - wholesale
90,301

 
92,335

 
78,525

 
131,557

 
176,550

 
$
1,295,770

 
$
1,295,853

 
$
1,278,007

 
$
1,340,051

 
$
1,371,089

 
 
 
 
 
 
 
 
 
 
SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,540,522

 
$
1,565,996

 
$
1,581,833

 
$
1,637,309

 
$
1,624,437

Total average interest–earning assets
1,463,404

 
1,492,824

 
1,496,682

 
1,549,746

 
1,535,843

Average loans
1,274,788

 
1,291,339

 
1,294,387

 
1,330,276

 
1,331,302

Average securities
113,234

 
107,384

 
103,928

 
95,065

 
108,050

Average stock in FHLB & FRB
8,125

 
8,411

 
8,289

 
8,290

 
8,290

Average other interest–earning assets
67,257

 
85,690

 
90,078

 
116,115

 
88,201

Total average interest–bearing liabilities
1,098,424

 
1,117,188

 
1,131,372

 
1,176,898

 
1,170,322

Average interest–bearing deposits
1,059,929

 
1,055,228

 
1,070,635

 
1,116,057

 
1,112,210

Average borrowings
38,495

 
61,960

 
60,737

 
60,841

 
58,112

Average stockholders’ equity
194,745

 
197,314

 
199,672

 
201,604

 
201,420

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
4.17
%
 
4.04
%
 
4.00
%
 
3.85
%
 
3.65
%
Average loans
4.43

 
4.34

 
4.33

 
4.22

 
3.98

Average securities
2.20

 
2.04

 
1.81

 
1.58

 
1.43

Average other interest–earning assets
2.28

 
1.81

 
1.62

 
1.60

 
1.29

Total average interest–bearing liabilities
0.87

 
0.73

 
0.62

 
0.59

 
0.55

Average interest–bearing deposits
0.85

 
0.70

 
0.58

 
0.55

 
0.51

Average borrowings
1.34

 
1.36

 
1.35

 
1.35

 
1.34

Average cost of total deposits
0.70

 
0.57

 
0.48

 
0.45

 
0.42

Average cost of funds
0.72

 
0.61

 
0.52

 
0.49

 
0.46

Net interest rate spread
3.30

 
3.31

 
3.38

 
3.26

 
3.10

Net interest margin
3.51

 
3.49

 
3.53

 
3.41

 
3.23

(1)     Annualized

Page 7

BANKFINANCIAL CORPORATION
SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA
Latest Five Quarters
(Dollars in thousands; except per share) – (Unaudited)


 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
12.53
%
 
12.39
%
 
12.72
%
 
12.16
%
 
12.08
%
Tangible equity to tangible total assets (end of period)
12.53

 
12.38

 
12.71

 
12.14

 
12.05

Risk–based total capital ratio
17.40

 
16.73

 
17.72

 
17.06

 
16.43

Common Tier 1 (CET1)
16.67

 
16.02

 
16.98

 
16.33

 
15.71

Risk–based tier 1 capital ratio
16.67

 
16.02

 
16.98

 
16.33

 
15.71

Tier 1 leverage ratio
12.06

 
11.93

 
12.03

 
11.49

 
11.36

Tier 1 capital
$
185,015

 
$
185,836

 
$
189,152

 
$
187,005

 
$
182,683

BankFinancial, NA
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
16.61
%
 
15.83
%
 
17.13
%
 
16.48
%
 
15.85
%
Common Tier 1 (CET1)
15.88

 
15.12

 
16.38

 
15.74

 
15.13

Risk–based tier 1 capital ratio
15.88

 
15.12

 
16.38

 
15.74

 
15.13

Tier 1 leverage ratio
11.49

 
11.26

 
11.60

 
11.08

 
10.94

Tier 1 capital
$
176,199

 
$
175,349

 
$
182,464

 
$
180,216

 
$
175,838

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
15.94

 
$
17.65

 
$
16.98

 
$
15.34

 
$
15.89

High
18.08

 
18.62

 
17.20

 
17.00

 
16.89

Low
15.32

 
15.07

 
15.07

 
14.79

 
14.66

Common shares outstanding
17,206,303

 
17,461,088

 
17,877,223

 
17,958,723

 
18,063,623

Book value per share
$
11.16

 
$
11.12

 
$
11.10

 
$
11.00

 
$
11.06

Tangible book value per share
$
11.16

 
$
11.12

 
$
11.09

 
$
10.99

 
$
11.04

Cash dividends declared on common stock
$
0.10

 
$
0.09

 
$
0.08

 
$
0.08

 
$
0.07

Dividend payout ratio
46.65
%
 
34.20
%
 
40.35
%
 
145.59
%
 
35.69
%
Stock repurchases
$
4,103

 
$
7,167

 
$
1,323

 
$
1,671

 
$
2,581

Stock repurchases – shares
254,785

 
415,889

 
81,500

 
104,900

 
166,237

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income
$
3,737

 
$
4,630

 
$
3,559

 
$
991

 
$
3,560

Average common shares outstanding
17,365,679

 
17,634,190

 
17,931,579

 
18,017,708

 
18,140,599

Unvested restricted stock shares

 
(375
)
 
(940
)
 
(940
)
 
(940
)
Weighted average common shares outstanding
17,365,679


17,633,815

 
17,930,639

 
18,016,768

 
18,139,659

Plus: Dilutive common shares equivalents

 

 
461

 
461

 
450

Weighted average dilutive common shares outstanding
17,365,679

 
17,633,815

 
17,931,100

 
18,017,229

 
18,140,109

Basic earnings per common share
$
0.22

 
$
0.26

 
$
0.20

 
$
0.06

 
$
0.20

Diluted earnings per common share
$
0.22

 
$
0.26

 
$
0.20

 
$
0.06

 
$
0.20



Page 8


BANKFINANCIAL CORPORATION
NON–GAAP FINANCIAL MEASURES
BankFinancial Corporation, a Maryland corporation (“the Company”) utilizes a number of different financial measures, both GAAP and non–GAAP, in making operating, budgeting and planning decisions for future periods. Generally, a non–GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States, or GAAP. The Company believes that the use of the non–GAAP financial measures described below provides the Board of Directors and management, and may provide some investors, with a more complete understanding of the Company’s operating results and trends, and facilitate comparisons to historical and peer performance. The Company’s non–GAAP financial measures should be considered supplemental in nature and should not be considered in isolation, or as superior to or a substitute for, financial measures that are prepared in accordance with GAAP. In addition, the Company’s non–GAAP financial measures may differ from similar non–GAAP financial measures that are used by other companies, thus limiting their usefulness as a comparative tool.
These measures include pre–tax pre–provision earnings from adjusted operations and pre–tax pre–provision earnings from adjusted operations to average total assets. Management believes that by excluding equity-based compensation expense, other real estate owned related income and expense items and nonperforming asset management expenses from noninterest expense, these measures better reflect our adjusted operating performance.

Page 9

BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share) - (Unaudited)

 
 
 
 
 
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
Pre–tax pre–provision earnings from adjusted operations
 
 
 
 
 
 
Income before income taxes
$
5,133

 
$
4,154

 
$
15,829

 
$
10,501

Recovery of loan losses
(23
)
 
(225
)
 
(258
)
 
(15
)
 
5,110

 
3,929

 
15,571

 
10,486

Adjustments:
 
 
 
 
 
 
 
Equity-based compensation

 

 

 
1,076

Bank-owned life insurance death benefit

 

 
(1,389
)
 

Nonperforming asset management
60

 
84

 
313

 
215

Loss (gain) on sale of other real estate owned
(12
)
 
69

 
56

 
100

Valuation adjustments of other real estate owned
1

 
227

 
27

 
301

Operations of other real estate owned
70

 
107

 
272

 
460

Adjustments
119

 
487

 
(721
)
 
2,152

Pre–tax pre–provision earnings from adjusted operations
$
5,229

 
$
4,416

 
$
14,850

 
$
12,638

 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from adjusted operations to average total assets (1)
1.36
%
 
1.09
%
 
1.27
%
 
1.05
%

(1)
Annualized

Page 10

BANKFINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share) - (Unaudited)

FOR THE LATEST FIVE QUARTERS
 
2018
 
2017
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
IIIQ
Pre–tax pre–provision earnings from adjusted operations
 
 
 
 
 
 
Income before income taxes
$
5,133

 
$
5,837

 
$
4,859

 
$
5,693

 
$
4,154

Provision for (recovery of) loan losses
(23
)
 
23

 
(258
)
 
(72
)
 
(225
)
 
5,110

 
5,860

 
4,601

 
5,621

 
3,929

Adjustments:
 
 
 
 
 
 
 
 
 
Bank-owned life insurance death benefit

 
(1,389
)
 

 

 

Nonperforming asset management
60

 
51

 
202

 
125

 
84

Loss (gain) on sale of other real estate owned
(12
)
 
47

 
21

 
(55
)
 
69

Valuation adjustments of other real estate owned
1

 
1

 
25

 
32

 
227

Operations of other real estate owned
70

 
87

 
115

 
85

 
107

 
119

 
(1,203
)
 
363

 
187

 
487

Pre–tax pre–provision earnings from adjusted operations
$
5,229

 
$
4,657

 
$
4,964

 
$
5,808

 
$
4,416

 
 
 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from adjusted operations to average total assets (1)
1.36
%
 
1.19
%
 
1.26
%
 
1.42
%
 
1.09
%

(1)
Annualized

Page 11