Document

0001303942-19-000008.txt : 20190122 0001303942-19-000008.hdr.sgml : 20190122 20190122161757 ACCESSION NUMBER: 0001303942-19-000008 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20190122 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190122 DATE AS OF CHANGE: 20190122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BankFinancial CORP CENTRAL INDEX KEY: 0001303942 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51331 FILM NUMBER: 19535550 BUSINESS ADDRESS: STREET 1: 15W060 NORTH FRONTAGE ROAD CITY: BURR RIDGE STATE: IL ZIP: 60527 BUSINESS PHONE: (800) 894-6900 MAIL ADDRESS: STREET 1: 15W060 NORTH FRONTAGE ROAD CITY: BURR RIDGE STATE: IL ZIP: 60527 8-K 1 bfin2018128kresults.htm 8-K Document

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 22, 2019

BANKFINANCIAL CORPORATION

(Exact Name of Registrant as Specified in Charter)



Maryland	0-51331	75-3199276
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

15W060 North Frontage Road, Burr Ridge, Illinois (Address of Principal Executive Offices)		60527
		(Zip Code)

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

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):



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



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



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



¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition.

On January 22, 2019, BankFinancial Corporation (Nasdaq – BFIN) issued a press release announcing the results for the fourth quarter and year end ending December 31, 2018 and issued the Fourth Quarter 2018 Quarterly Financial and Statistical Supplement for the latest five quarters. The press release and Quarterly Financial and Statistical Supplement are included as Exhibits 99.1 and 99.2 to this report.

BankFinancial Corporation (the “Company”) will review fourth quarter and year ending December 31, 2018 results in a conference call and webcast for stockholders and analysts on Wednesday, January 23, 2019 at 9:30 a.m. Chicago, Illinois Time.

The conference call may be accessed by calling (844) 413-1780 using participant passcode 24121246. The conference call will be simultaneously webcast at www.bankfinancial.com, “Investor Relations” page.

Item 901 Financial Statements and Exhibits.


(a)	Not Applicable.


(b)	Not Applicable.


(c)	Not Applicable.


(d)	Exhibits.

Exhibit No. Description

99.1Press Release dated January 22, 2019

99.2Quarterly Financial and Statistical Supplement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.



		BANKFINANCIAL CORPORATION

Dated:	January 22, 2019	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board, Chief Executive Officer and President

EX-99.1 2 bfin201812ex991earningspr.htm EXHIBIT 99.1 Exhibit

Exhibit 99.1

FOR IMMEDIATE RELEASE

BankFinancial Corporation Reports Financial Results for 2018 and

Will Host Conference Call and Webcast on January 23, 2019

Burr Ridge, Illinois - (January 22, 2019) BankFinancial Corporation (Nasdaq - BFIN) (the “Company”) announced today that the Company recorded net income of $19.3 million for the year ended December 31, 2018 and basic and diluted earnings per share for the year ended December 31, 2018 were $1.11.

For the fourth quarter of 2018, the Company recorded net income of $7.4 million and basic and diluted earnings per share of common stock of $0.44, compared to $991,000 and $0.06 per share for the fourth quarter of 2017. Net income for the fourth quarter of 2018 includes $5.1 million, net of tax, of realized and unrealized gains on sale of the Company’s Class B Visa common shares and $763,000 in accrued expense, net of tax, related to certain contract termination and severance payments.

The Company’s total loans increased by $56.0 million in the fourth quarter of 2018 due to growth in commercial and industrial loans, commercial leases, multi-family real estate loans and commercial real estate loans, which was partially offset by prepayments of residential loans. Total deposits increased by $56.7 million during the fourth quarter of 2018 due primarily to growth in non-interest bearing deposits and certificates of deposits. The average yield on the Company’s loan portfolio for the quarter ended December 31, 2018 was 4.59%, a 9% increase compared to the fourth quarter of 2017. The increase in the average yield on loans was due to changes in the loan portfolio composition and higher market rates.

For the year 2018, commercial and industrial loans increased by $34.9 million (22.8%), multi-family real estate loans increased by $31.5 million (5.4%) and middle-market commercial leases increased by $30.6 million (29.8%). These increases were partially offset by planned declines in the balances of residential mortgage loans, commercial real estate mortgage loans and investment-grade commercial leases. Total commercial-related loan balances reached a new record level of $1.26 billion at the end of 2018, and now comprise 94.6% of the Company’s total loans, compared to 92.5% at the end of 2017.

The Company’s asset quality remained favorable in 2018. The ratio of nonperforming loans to total loans was 0.11% and the ratio of non-performing assets to total assets was 0.17% at December 31, 2018. Non-performing commercial-related loans represented 0.02% of total commercial-related loans.

Total retail and commercial deposits were stable in 2018. The Company introduced several new deposit account types to attract new customers and expand relationships with existing customers. The Company’s liquid assets were 11.8% of total assets at December 31, 2018. The Company intends to continue to develop new products, service delivery channels and marketing capabilities to further position it for future loan and deposit growth, and the expansion of non-interest income.

The Company’s capital position remained strong with a Tier 1 leverage ratio of 11.82%. During 2018, the Company increased its quarterly dividend rate by 25% to $0.10 per share from $0.08 per share. The Company repurchased 1,476,963 common shares during the year ended December 31, 2018, which represented 8.2% of the Company’s common shares that were outstanding on December 31, 2017. The Company’s tangible book value per share increased in 2018 by 3.3% to $11.35 per share.

“Our 2018 results reflect the successful execution of key business plan objectives, including accelerating our growth in commercial loans, maintaining strong asset quality and improving our overall efficiency. We look forward to further improvements in these positive trends in 2019,” said F. Morgan Gasior, the Chairman and CEO of the Company.

The Company’s Quarterly Financial and Statistical Supplement will be available today on BankFinancial's website, www.bankfinancial.com on the “Stockholder Information” page, and through the EDGAR database on the SEC's website, www.sec.gov. The Quarterly Financial and Statistical Supplement includes comparative GAAP performance data and financial measures for the most recent five quarters.

BankFinancial's management will review fourth quarter 2018 results in a conference call and webcast for stockholders and analysts on Wednesday, January 23, 2019 at 9:30 a.m. Chicago, Illinois Time. The conference call may be accessed by calling (844) 413-1780 using participant passcode 24121246. The conference call will be simultaneously webcast at www.bankfinancial.com, “Investor Relations” page. For those unable to participate in the conference call, the webcast will be archived through 11:59 p.m. Chicago Time February 13, 2019.

BankFinancial Corporation is the holding company for BankFinancial, NA, a national bank providing financial services to individuals, families and businesses through 19 full-service banking offices, located in Cook, DuPage, Lake and Will Counties, Illinois and to selected commercial loan and deposit customers on a regional or national basis. BankFinancial Corporation's common stock trades on the Nasdaq Global Select Market under the symbol BFIN. Additional information may be found at the company's website, www.bankfinancial.com.

This release includes “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. A variety of factors could cause BankFinancial’s actual results to differ from those expected at the time of this release. For a discussion of some of the factors that may cause actual results to differ from expectations, please refer to BankFinancial’s most recent Annual Report on Form 10-K as filed with the SEC, as supplemented by subsequent filings with the SEC. Investors are urged to review all information contained in these reports, including the risk factors discussed therein. Copies of these filings are available at no cost on the SEC's web site at www.sec.gov or on BankFinancial’s web site at www.bankfinancial.com. Forward looking statements speak only as of the date they are made, and we do not undertake to update them to reflect changes.



For Further Information Contact:
Shareholder, Analyst and Investor Inquiries:		Media Inquiries:
Elizabeth A. Doolan Senior Vice President – Finance BankFinancial Corporation Telephone: 630-242-7151		Gregg T. Adams President – Marketing & Sales BankFinancial, NA Telephone: 630-242-7234

EX-99.2 3 bfin-20181231ex992suppleme.htm EXHIBIT 99.2 Exhibit

Exhibit 99.2

BANKFINANCIAL CORPORATION

FOURTH 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
	IVQ			IIIQ			IIQ			IQ			IVQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾	1.92		%	0.97		%	1.18		%	0.90		%	0.24		%
Return on equity (ratio of net income to average equity)⁽¹⁾	15.72			7.68			9.39			7.13			1.97
Net interest rate spread ⁽¹⁾	3.24			3.30			3.31			3.38			3.26
Net interest margin ⁽¹⁾	3.52			3.51			3.49			3.53			3.41
Efficiency ratio	51.22			64.84			63.55			68.40			62.37
Noninterest expense to average total assets⁽¹⁾	2.88			2.45			2.61			2.52			2.28
Average interest–earning assets to average interest–bearing liabilities	133.35			133.23			133.62			132.29			131.68
Number of full service offices	19			19			19			19			19
Employees (full time equivalents) ⁽²⁾	236			245			250			237			236

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	13,805		$	12,473		$	11,738		$	10,613		$	13,572
Interest-bearing deposits in other financial institutions	84,399			74,461			80,457			81,963			114,020
Securities, at fair value	88,179			103,921			112,452			102,661			93,383
Loans receivable, net	1,323,793			1,267,787			1,287,823			1,277,553			1,314,651
Other real estate owned, net	1,226			985			1,187			1,802			2,351
Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost	8,026			8,026			8,311			8,290			8,290
Premises and equipment, net	25,205			24,473			24,441			24,628			24,856
Premises held-for-sale	—			—			—			5,581			5,667
Intangible assets	102			123			143			164			286
Bank owned life insurance	18,809			18,781			18,746			22,925			22,859
Deferred taxes	6,235			8,911			10,199			11,363			12,563
Other assets	15,546			12,543			12,001			12,386			13,060
Total assets	$	1,585,325		$	1,532,484		$	1,567,498		$	1,559,929		$	1,625,558

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,352,484		$	1,295,770		$	1,295,853		$	1,278,007		$	1,340,051
Borrowings	21,049			21,232			50,901			60,983			60,768
Other liabilities	24,642			23,399			26,516			22,587			27,105
Total liabilities	1,398,175			1,340,401			1,373,270			1,361,577			1,427,924
Stockholders’ equity	187,150			192,083			194,228			198,352			197,634
Total liabilities and stockholders’ equity	$	1,585,325		$	1,532,484		$	1,567,498		$	1,559,929		$	1,625,558

(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			For the years ended December 31,
	IVQ		IIIQ			IIQ			IQ			IVQ			2018		2017
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	16,146	$	15,373		$	15,020		$	14,748		$	15,047		$	61,287	$	56,179
Total interest expense	3,043		2,408			2,039			1,727			1,742			9,217		6,089
Net interest income before provision (recovery)	13,103		12,965			12,981			13,021			13,305			52,070		50,090
Provision for (recovery of) loan losses	403		(23		)	23			(258		)	(72		)	145		(87		)
Net interest income	12,700		12,988			12,958			13,279			13,377			51,925		50,177
Noninterest income	8,674		1,570			3,094			1,539			1,634			14,877		6,408
Noninterest expense	11,155		9,425			10,215			9,959			9,318			40,754		40,391
Income before income tax	10,219		5,133			5,837			4,859			5,693			26,048		16,194
Income tax expense ⁽¹⁾	2,803		1,396			1,207			1,300			4,702			6,706		7,190
Net income	$	7,416	$	3,737		$	4,630		$	3,559		$	991		$	19,342	$	9,004
Basic earnings per common share	$	0.44	$	0.22		$	0.26		$	0.20		$	0.06		$	1.11	$	0.49
Diluted earnings per common share	$	0.44	$	0.22		$	0.26		$	0.20		$	0.06		$	1.11	$	0.49

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	998	$	1,003		$	989		$	978		$	989		$	3,968	$	3,953
Loan fee income	208		71			90			70			114			439		326
Commercial mortgage brokerage fees	—		12			85			41			—			138		—
Residential mortgage banking fees	31		34			24			30			43			119		215
Gain (loss) on sales of equity securities	3,572		—			(14		)	—			—			3,558		—
Unrealized gain on equity securities	3,427		—			—			—			—			3,427		—
Gain on sale of premises held-for-sale	—		—			93			—			—			93		—
Trust insurance commissions and annuities income	267		207			250			213			267			937		971
Earnings on bank owned life insurance	28		35			45			66			69			174		265
Bank-owned life insurance death benefit	—		—			1,389			—			—			1,389		—
Other	143		208			143			141			152			635		678
Total noninterest income	$	8,674	$	1,570		$	3,094		$	1,539		$	1,634		$	14,877	$	6,408

Noninterest Expense
Compensation and benefits	$	6,755	$	5,120		$	5,790		$	5,322		$	4,975		$	22,987	$	21,767
Office occupancy and equipment	1,795		1,629			1,662			1,731			1,709			6,817		6,623
Advertising and public relations	237		194			274			143			197			848		1,004
Information technology	726		717			708			641			673			2,792		2,743
Supplies, telephone, and postage	363		341			396			333			339			1,433		1,366
Amortization of intangibles	21		20			21			122			122			184		496
Nonperforming asset management	40		60			51			202			125			353		340
Loss (gain) on sales of other real estate owned	—		(12		)	47			21			(55		)	56		45
Valuation adjustments of other real estate owned	—		1			1			25			32			27		333
Operations of other real estate owned	77		70			87			115			85			349		545
FDIC insurance premiums	99		115			104			119			125			437		587
Other	1,042		1,170			1,074			1,185			991			4,471		4,542
Total noninterest expense	$	11,155	$	9,425		$	10,215		$	9,959		$	9,318		$	40,754	$	40,391


(1)	Fourth quarter 2017 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
	IVQ			IIIQ			IIQ			IQ			IVQ
LOANS
One–to–four family residential real estate loans	$	70,371		$	77,591		$	84,048		$	92,056		$	97,814
Multi–family mortgage loans	619,870			581,880			571,886			578,144			588,383
Nonresidential real estate loans	152,442			148,010			155,627			163,856			169,971
Construction and land loans	172			1,130			1,316			1,328			1,358
Commercial loans	187,406			167,547			163,925			162,564			152,552
Commercial leases	299,394			297,103			316,555			285,222			310,076
Consumer loans	1,539			1,416			1,469			1,494			1,597
	1,331,194			1,274,677			1,294,826			1,284,664			1,321,751
Net deferred loan origination costs	1,069			1,213			1,176			1,230			1,266
Allowance for loan losses	(8,470		)	(8,103		)	(8,179		)	(8,341		)	(8,366		)
Loans, net	$	1,323,793		$	1,267,787		$	1,287,823		$	1,277,553		$	1,314,651

LOAN ORIGINATIONS ⁽¹⁾
One–to–four family residential real estate loans	$	647		$	1,290		$	987		$	964		$	1,103
Multi–family mortgage loans	71,101			31,633			21,838			14,339			26,830
Nonresidential real estate loans	7,120			1,166			1,310			2,011			2,311
Commercial loans	171,048			164,974			164,048			150,804			100,667
Commercial leases	52,929			27,296			77,744			20,771			42,700
Consumer loans	913			695			672			584			781
	$	303,758		$	227,054		$	266,599		$	189,473		$	174,392
Weighted average rate	5.91		%	5.96		%	5.62		%	5.61		%	5.12		%

LOAN PAYMENTS and PAYOFFS⁽²⁾
One–to–four family residential real estate loans	$	7,590		$	7,135		$	8,959		$	6,453		$	7,611
Multi–family mortgage loans	35,135			19,804			27,911			24,524			14,998
Nonresidential real estate loans	4,315			8,890			9,499			8,148			9,577
Construction and land loans	27			184			15			31			31
Commercial loans	151,768			161,359			162,544			140,449			94,996
Commercial leases	50,742			46,885			47,417			45,790			65,707
Consumer loans	868			762			704			631			732
	$	250,445		$	245,019		$	257,049		$	226,026		$	193,652
Weighted average rate	5.59		%	5.56		%	5.28		%	4.97		%	4.67		%


(1)	Loan originations include purchases 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
	IVQ			IIIQ			IIQ			IQ			IVQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate loans	$	1,240		$	1,369		$	1,538		$	1,589		$	2,027
Multi–family mortgage loans	—			102			92			369			363
Nonresidential real estate loans	270			—			—			—			—
Consumer loans	—			—			6			—			—
Nonaccrual loans	1,510			1,471			1,636			1,958			2,390

Other real estate owned:
One–to–four family residential real estate loans	875			634			833			935			827
Multi–family real estate	276			276			276			—			—
Nonresidential real estate	74			74			74			863			1,520
Land	1			1			4			4			4
Other real estate owned	1,226			985			1,187			1,802			2,351

Nonperforming assets	$	2,736		$	2,456		$	2,823		$	3,760		$	4,741

Asset Quality Ratios
Nonperforming assets to total assets	0.17		%	0.16		%	0.18		%	0.24		%	0.29		%
Nonperforming loans to total loans	0.11			0.12			0.13			0.15			0.18
Nonperforming commercial-related loans to total commercial-related loans ⁽¹⁾	0.02			0.01			0.01			0.03			0.03
Nonperforming residential and consumer loans to total residential and consumer loans	1.72			1.73			1.81			1.70			2.04
Allowance for loan losses to nonperforming loans	560.93			550.85			499.94			426.00			350.04

Concentrations of Credit
Commercial Real Estate for FFEIC Concentration Limits	$	737,887		$	697,843		$	694,555		$	706,488		$	721,587
% FFIEC Total Capital	413.00		%	378.64		%	378.45		%	370.18		%	382.64		%

Multi–family mortgage loans - 50% risk based capital qualified (included above)	$	370,512		$	357,947		$	299,138		$	353,686		$	365,713
% FFIEC Total Capital	207.38		%	194.22		%	162.99		%	185.32		%	193.93		%

Commercial Leases - Investment Grade	$	166,209		$	181,131		$	197,746		$	186,052		$	207,460
Commercial Leases - Other	133,185			115,972			118,809			99,170			102,616


(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
	IVQ			IIIQ			IIQ			IQ			IVQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate loans	$	365		$	409		$	295		$	362		$	295
Multi–family mortgage loans	216			310			218			222			225
Nonresidential real estate loans	98			99			100			149			154
Commercial loans	342			4,699			3,820			2,258			2,248
Consumer loans	7			10			1			—			—
	$	1,028		$	5,527		$	4,434		$	2,991		$	2,922

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	8,103		$	8,179		$	8,341		$	8,366		$	8,374
Charge offs:
One–to–four family residential real estate loans	(17		)	(84		)	(33		)	(97		)	(36		)
Multi–family mortgage loans	—			—			(35		)	—			—
Nonresidential real estate loans	(93		)	—			—			—			—
Commercial loans				—			(140		)	—			—
Consumer loans	(12		)	(6		)	(1		)	—			(3		)
	(122		)	(90		)	(209		)	(97		)	(39		)
Recoveries:
One–to–four family residential real estate loans	76			25			6			99			45
Multi–family mortgage loans	8			8			10			8			8
Nonresidential real estate loans	—			—			—			—			7
Construction and land loans	—			2			—			—			—
Commercial loans	2			2			2			223			42
Commercial leases	—			—			5			—			—
Consumer loans	—			—			1			—			1
	86			37			24			330			103
Net (charge–offs) recoveries	(36		)	(53		)	(185		)	233			64
Provision for (recovery of) loan losses	403			(23		)	23			(258		)	(72		)
Ending balance	$	8,470		$	8,103		$	8,179		$	8,341		$	8,366

Allowance for loan losses to total loans	0.64		%	0.64		%	0.63		%	0.65		%	0.63		%
Net (charge–off) recovery ratio ⁽¹⁾	(0.01		)	(0.02		)	(0.06		)	0.07			0.02


(1)	Annualized

Page 6

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2018												2017
	IVQ			IIIQ			IIQ			IQ			IVQ
DEPOSITS
Noninterest–bearing demand	$	230,041		$	225,446		$	229,717		$	232,593		$	234,354
Interest–bearing NOW accounts	275,830			283,561			281,603			283,311			289,657
Money market accounts	255,951			266,070			281,493			290,575			299,581
Savings deposits	152,334			155,232			158,731			160,093			160,501
Certificates of deposit - retail	332,053			275,160			251,974			232,910			224,401
Certificates of deposit - wholesale	106,275			90,301			92,335			78,525			131,557
	$	1,352,484		$	1,295,770		$	1,295,853		$	1,278,007		$	1,340,051

SELECTED AVERAGE BALANCES
Total average assets	$	1,548,292		$	1,540,522		$	1,565,996		$	1,581,833		$	1,637,309
Total average interest–earning assets	1,478,028			1,463,404			1,492,824			1,496,682			1,549,746
Average loans	1,296,108			1,274,788			1,291,339			1,294,387			1,330,276
Average securities	98,756			113,234			107,384			103,928			95,065
Average stock in FHLB & FRB	8,026			8,125			8,411			8,289			8,290
Average other interest–earning assets	75,138			67,257			85,690			90,078			116,115
Total average interest–bearing liabilities	1,108,397			1,098,424			1,117,188			1,131,372			1,176,898
Average interest–bearing deposits	1,085,611			1,059,929			1,055,228			1,070,635			1,116,057
Average borrowings	22,786			38,495			61,960			60,737			60,841
Average stockholders’ equity	188,643			194,745			197,314			199,672			201,604

SELECTED YIELDS AND COST OF FUNDS ^(1):
Total average interest–earning assets	4.33		%	4.17		%	4.04		%	4.00		%	3.85		%
Average loans	4.59			4.43			4.34			4.33			4.22
Average securities	2.38			2.20			2.04			1.81			1.58
Average other interest–earning assets	2.61			2.28			1.81			1.62			1.60
Total average interest–bearing liabilities	1.09			0.87			0.73			0.62			0.59
Average interest–bearing deposits	1.07			0.85			0.70			0.58			0.55
Average borrowings	1.98			1.34			1.36			1.35			1.35
Average cost of total deposits	0.89			0.70			0.57			0.48			0.45
Average cost of funds	0.90			0.72			0.61			0.52			0.49
Net interest rate spread	3.24			3.30			3.31			3.38			3.26
Net interest margin	3.52			3.51			3.49			3.53			3.41


(1)	Annualized

Page 7

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2018												2017
	IVQ			IIIQ			IIQ			IQ			IVQ
CAPITAL RATIOS
BankFinancial Corporation
Equity to total assets (end of period)	11.81		%	12.53		%	12.39		%	12.72		%	12.16		%
Tangible equity to tangible total assets (end of period)	11.80			12.53			12.38			12.71			12.14
Risk–based total capital ratio	16.33			17.40			16.73			17.72			17.06
Common Tier 1 (CET1)	15.61			16.67			16.02			16.98			16.33
Risk–based tier 1 capital ratio	15.61			16.67			16.02			16.98			16.33
Tier 1 leverage ratio	11.82			12.06			11.93			12.03			11.49
Tier 1 capital	$	182,404		$	185,015		$	185,836		$	189,152		$	187,005
BankFinancial, NA
Risk–based total capital ratio	15.30		%	16.61		%	15.83		%	17.13		%	16.48		%
Common Tier 1 (CET1)	14.57			15.88			15.12			16.38			15.74
Risk–based tier 1 capital ratio	14.57			15.88			15.12			16.38			15.74
Tier 1 leverage ratio	11.03			11.49			11.26			11.60			11.08
Tier 1 capital	$	170,194		$	176,199		$	175,349		$	182,464		$	180,216

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	14.95		$	15.94		$	17.65		$	16.98		$	15.34
High	16.06			18.08			18.62			17.20			17.00
Low	13.88			15.32			15.07			15.07			14.79
Common shares outstanding	16,481,514			17,206,303			17,461,088			17,877,223			17,958,723
Book value per share	$	11.36		$	11.16		$	11.12		$	11.10		$	11.00
Tangible book value per share	$	11.35		$	11.16		$	11.12		$	11.09		$	10.99
Cash dividends declared on common stock	$	0.10		$	0.10		$	0.09		$	0.08		$	0.08
Dividend payout ratio	22.74		%	46.65		%	34.20		%	40.35		%	145.59		%
Stock repurchases	$	10,691		$	4,103		$	7,167		$	1,323		$	1,671
Stock repurchases – shares	724,789			254,785			415,889			81,500			104,900

EARNINGS PER SHARE COMPUTATIONS
Net income	$	7,416		$	3,737		$	4,630		$	3,559		$	991
Average common shares outstanding	16,820,641			17,365,679			17,634,190			17,931,579			18,017,708
Less - Unvested restricted stock shares	—			—			(375		)	(940		)	(940		)
Weighted average common shares outstanding	16,820,641			17,365,679			17,633,815			17,930,639			18,016,768
Plus: Dilutive common shares equivalents	—			—			—			461			461
Weighted average dilutive common shares outstanding	16,820,641			17,365,679			17,633,815			17,931,100			18,017,229
Basic earnings per common share	$	0.44		$	0.22		$	0.26		$	0.20		$	0.06
Diluted earnings per common share	$	0.44		$	0.22		$	0.26		$	0.20		$	0.06

Page 8

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M+HWKC9E8U%K359ZB+,1CS+[/FZ7LE'<6 M^G6C\&K%.LD5H7%I7![5>6V(IW%W+DZRUH-;VP=R2Y8D0B-+>! AKTI4.R@6 M#$YQQ> #"()(WT$P>@.@.@.@.@.@.@.@.@.@__]D! end