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EX-99.1 - PRESS RELEASE DATED FEBRUARY 1, 2013 - BankFinancial CORPbfin-20121231xexx991.htm

Exhibit 99.2



BANKFINANCIAL CORPORATION
FOURTH QUARTER 2012
QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT
FOR THE LATEST FIVE QUARTERS


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

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



 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income (loss) to average total assets) (1)
(6.66
)%
 
(1.39
)%
 
0.21
%
 
0.61
%
 
(11.65
)%
Return on equity (ratio of net income (loss) to average equity) (1)
(50.32
)
 
(10.20
)
 
1.56

 
4.61

 
(75.38
)
Net interest rate spread (1)
3.51

 
3.69

 
4.04

 
4.18

 
4.19

Net interest margin (1)
3.58

 
3.76

 
4.11

 
4.26

 
4.28

Efficiency ratio, less goodwill impairment
104.78

 
105.04

 
87.07

 
78.00

 
90.76

Noninterest expense to average total assets, less goodwill impairment (1)
4.05

 
4.26

 
3.68

 
3.49

 
4.04

Average interest–earning assets to average interest–bearing liabilities
123.20

 
123.54

 
123.50

 
122.46

 
122.86

Number of full service offices
20

 
20

 
20

 
20

 
20

Employees (full time equivalents)
352

 
347

 
350

 
353

 
357

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
20,361

 
$
19,619

 
$
17,679

 
$
24,037

 
$
24,247

Interest-bearing deposits in other financial institutions
255,403

 
217,110

 
203,028

 
154,043

 
96,457

Securities, at fair value
77,832

 
81,748

 
75,040

 
81,241

 
92,832

Loans held-for-sale
2,166

 
551

 
505

 
521

 
1,918

Loans receivable, net
1,030,465

 
1,080,489

 
1,118,928

 
1,177,719

 
1,227,391

Other real estate owned, net
10,358

 
14,994

 
17,251

 
20,189

 
22,480

Stock in Federal Home Loan Bank, at cost
8,412

 
9,067

 
10,160

 
11,336

 
16,346

Premises and equipment, net
38,251

 
38,555

 
38,934

 
39,044

 
39,155

Intangible assets
3,038

 
3,195

 
3,351

 
3,508

 
3,671

Bank owned life insurance
21,645

 
21,562

 
21,453

 
21,333

 
21,207

FDIC prepaid expense
2,658

 
3,118

 
3,738

 
4,027

 
4,351

Income tax receivable
461

 
461

 
694

 
1,353

 
1,809

Other assets
10,142

 
9,403

 
11,433

 
10,786

 
11,711

Total assets
$
1,481,192

 
$
1,499,872

 
$
1,522,194

 
$
1,549,137

 
$
1,563,575

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,282,351

 
$
1,278,196

 
$
1,289,467

 
$
1,320,580

 
$
1,332,552

Borrowings
5,567

 
6,946

 
10,081

 
9,995

 
9,322

Other liabilities
20,384

 
16,733

 
19,703

 
16,451

 
21,844

Total liabilities
1,308,302

 
1,301,875

 
1,319,251

 
1,347,026

 
1,363,718

Stockholders’ equity
172,890

 
197,997

 
202,943

 
202,111

 
199,857

Total liabilities and stockholders’ equity
$
1,481,192

 
$
1,499,872


$
1,522,194


$
1,549,137


$
1,563,575

(1)Annualized


Page 2

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


 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
Total interest income
$
13,801

 
$
14,468

 
$
15,824

 
$
16,634

 
$
17,370

Total interest expense
1,059

 
1,036

 
1,112

 
1,240

 
1,380

Net interest income before provision
12,742

 
13,432

 
14,712

 
15,394

 
15,990

Provision for loan losses
24,328

 
4,453

 
1,745

 
996

 
9,740

Net interest income
(11,586
)
 
8,979

 
12,967

 
14,398

 
6,250

Noninterest income
1,771

 
1,831

 
1,418

 
1,832

 
2,004

Noninterest expense
15,207

 
16,032

 
14,044

 
13,436

 
40,193

Income (loss) before income tax
(25,022
)
 
(5,222
)
 
341

 
2,794

 
(31,939
)
Income tax expense (benefit)

 

 
(457
)
 
457

 
15,110

Net income (loss)
$
(25,022
)
 
$
(5,222
)
 
$
798

 
$
2,337

 
$
(47,049
)
Basic earnings (loss) per common share
$
(1.25
)
 
$
(0.26
)
 
$
0.04

 
$
0.12

 
$
(2.38
)
Diluted earnings (loss) per common share
$
(1.25
)
 
$
(0.26
)
 
$
0.04

 
$
0.12

 
$
(2.38
)
 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
550

 
$
548

 
$
521

 
$
557

 
$
657

Other fee income
380

 
374

 
383

 
385

 
430

Insurance commissions and annuities income
151

 
125

 
112

 
122

 
189

Gain on sales of loans, net
246

 
210

 
118

 
267

 
199

Gain (loss) on disposition of premises and equipment
8

 
(7
)
 
(157
)
 

 

Loan servicing fees
115

 
124

 
119

 
128

 
131

Amortization of servicing assets
(68
)
 
(61
)
 
(67
)
 
(69
)
 
(74
)
Recovery (impairment) of servicing assets
(17
)
 
6

 
(31
)
 
(13
)
 
17

Earnings on bank owned life insurance
83

 
109

 
120

 
126

 
141

Trust income
188

 
171

 
190

 
184

 
186

Other
135

 
232

 
110

 
145

 
128

Total noninterest income
$
1,771

 
$
1,831

 
$
1,418

 
$
1,832

 
$
2,004

 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
6,298

 
$
6,333

 
$
6,461

 
$
6,659

 
$
6,078

Office occupancy and equipment
1,715

 
1,627

 
1,755

 
1,743

 
1,870

Advertising and public relations
242

 
136

 
217

 
94

 
60

Information technology
1,104

 
1,127

 
1,146

 
1,261

 
1,058

Supplies, telephone, and postage
433

 
416

 
408

 
430

 
434

Amortization of intangibles
157

 
156

 
157

 
163

 
367

Nonperforming asset management
1,126

 
1,728

 
1,117

 
1,240

 
1,430

Loss (gain) on sales of other real estate owned
379

 
(42
)
 
54

 
(138
)
 
113

Valuation adjustments of other real estate owned
1,783

 
2,352

 
1,036

 
389

 
2,482

Operations of other real estate owned
344

 
432

 
601

 
301

 
844

FDIC insurance premiums
480

 
642

 
309

 
348

 
334

Goodwill impairment

 

 

 

 
23,862

Other
1,146

 
1,125

 
783

 
946

 
1,261

Total noninterest expense
$
15,207

 
$
16,032

 
$
14,044

 
$
13,436

 
$
40,193

 

Page 3

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


 
Year Ended December 31,
 
2012
 
2011
SUMMARY STATEMENT OF OPERATIONS
 
 
 
Total interest income
$
60,727

 
$
69,708

Total interest expense
4,447

 
6,915

Net interest income before provision
56,280

 
62,793

Provision for loan losses
31,522

 
22,723

Net interest income
24,758

 
40,070

Noninterest income
6,852

 
7,317

Noninterest expense
58,719

 
83,708

Loss before income tax
(27,109
)
 
(36,321
)
Income tax expense

 
12,375

Net loss
$
(27,109
)
 
$
(48,696
)
Basic loss per common share
$
(1.36
)
 
$
(2.46
)
Diluted loss per common share
$
(1.36
)
 
$
(2.46
)
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
Noninterest Income
 
 
 
Deposit service charges and fees
$
2,176

 
$
2,667

Other fee income
1,522

 
1,598

Insurance commissions and annuities income
510

 
659

Gain on sales of loans, net
841

 
340

Loss on disposition of premises and equipment
(156
)
 
(19
)
Loan servicing fees
486

 
538

Amortization of servicing assets
(265
)
 
(252
)
Impairment of servicing assets
(55
)
 
(15
)
Earnings on bank owned life insurance
438

 
626

Trust income
733

 
676

Other
622

 
499

Total noninterest income
$
6,852

 
$
7,317

 
 
 
 
Noninterest Expense
 
 
 
Compensation and benefits
$
25,751

 
$
26,027

Office occupancy and equipment
6,840

 
7,319

Advertising and public relations
689

 
890

Information technology
4,638

 
4,182

Supplies, telephone, and postage
1,687

 
1,698

Amortization of intangibles
633

 
1,689

Nonperforming asset management
5,211

 
4,431

Loss on sales of other real estate owned
253

 
15

Valuation adjustments of other real estate owned
5,560

 
3,970

Operations of other real estate owned
1,678

 
2,350

FDIC insurance premiums
1,779

 
1,441

Acquisition costs

 
1,761

Goodwill impairment

 
23,862

Other
4,000

 
4,073

Total noninterest expense
$
58,719

 
$
83,708




Page 4

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


 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
134,597

 
$
134,474

 
$
140,801

 
$
144,182

 
$
142,084

Savings deposits
144,726

 
143,212

 
144,875

 
147,706

 
144,515

Money market accounts
349,092

 
346,989

 
347,889

 
343,826

 
345,011

Interest–bearing NOW accounts
348,683

 
340,425

 
336,629

 
338,269

 
336,531

Certificates of deposits
305,253

 
313,096

 
319,273

 
346,597

 
364,411

Deposits
$
1,282,351

 
$
1,278,196

 
$
1,289,467

 
$
1,320,580

 
$
1,332,552

 
 
 
 
 
 
 
 
 
 
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
218,596

 
$
238,810

 
$
252,034

 
$
262,263

 
$
272,032

Multi–family mortgage loans
352,019

 
374,164

 
390,112

 
410,341

 
423,615

Nonresidential real estate loans
264,672

 
288,976

 
299,567

 
308,094

 
311,641

Construction and land loans
8,552

 
13,774

 
15,391

 
19,283

 
19,852

Commercial loans
61,388

 
61,053

 
68,510

 
81,998

 
93,932

Commercial leases
139,783

 
121,200

 
121,356

 
124,319

 
134,990

Consumer loans
2,745

 
2,273

 
2,055

 
2,211

 
2,147

Total loans
1,047,755

 
1,100,250

 
1,149,025

 
1,208,509

 
1,258,209

Net deferred loan origination costs
745

 
827

 
781

 
848

 
908

Allowance for loan losses
(18,035
)
 
(20,588
)
 
(30,878
)
 
(31,638
)
 
(31,726
)
Loans, net
$
1,030,465

 
$
1,080,489

 
$
1,118,928

 
$
1,177,719

 
$
1,227,391

 


Page 5

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


 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
7,299

 
$
11,334

 
$
14,214

 
$
11,602

 
$
10,622

Multi–family mortgage loans
3,517

 
11,501

 
12,640

 
13,264

 
14,807

Nonresidential real estate loans
8,985

 
25,541

 
30,096

 
32,892

 
29,927

Construction and land loans
2,210

 
3,584

 
4,005

 
3,263

 
3,246

Commercial loans
256

 
747

 
3,533

 
3,527

 
2,920

Commercial leases

 
68

 
159

 
22

 
22

Consumer loans

 
6

 
13

 
8

 
3

Nonaccrual loans
22,267

 
52,781

 
64,660

 
64,578

 
61,547

 
 
 
 
 
 
 
 
 
 
Loans held-for-sale
1,752

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
1,760

 
2,420

 
3,365

 
4,251

 
5,328

Multi–family real estate
720

 
1,985

 
2,645

 
3,005

 
3,655

Nonresidential real estate
3,504

 
4,244

 
4,496

 
4,756

 
4,905

Land
1,323

 
1,761

 
1,665

 
1,712

 
2,237

Other real estate owned
7,307

 
10,410

 
12,171

 
13,724

 
16,125

Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)
31,326

 
63,191

 
76,831


78,302

 
77,672

 
 
 
 
 
 
 
 
 
 
Purchased impaired loans:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
380

 
$
2,125

 
$
2,297

 
$
3,670

 
$
3,941

Multi–family mortgage loans

 
1,528

 
1,491

 
1,454

 
1,418

Nonresidential real estate loans
2,568

 
2,610

 
2,661

 
3,308

 
3,375

Construction and land loans
1,021

 
1,634

 
2,324

 
4,859

 
4,788

Commercial loans
20

 
357

 
677

 
841

 
1,078

Purchased impaired loans
3,989

 
8,254

 
9,450

 
14,132

 
14,600

Purchased other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate
320

 
320

 
535

 
721

 
327

Nonresidential real estate
462

 
577

 
927

 
2,264

 
2,546

Land
2,269

 
3,687

 
3,618

 
3,480

 
3,482

Purchased other real estate owned
3,051

 
4,584

 
5,080

 
6,465

 
6,355

Purchased impaired loans and OREO
7,040

 
12,838

 
14,530

 
20,597

 
20,955

Nonperforming assets
$
38,366

 
$
76,029

 
$
91,361

 
$
98,899

 
$
98,627

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
2.59
%
 
5.07
%
 
6.00
%
 
6.38
%
 
6.31
%
Nonperforming assets to total assets (1)
2.11

 
4.21

 
5.05

 
5.05

 
4.97

Nonaccrual loans to total loans
2.51

 
5.55

 
6.45

 
6.51

 
6.05

Nonaccrual loans to total loans (1)
2.13

 
4.80

 
5.63

 
5.34

 
4.89

Allowance for loan losses to nonaccrual loans
64.39

 
33.73

 
41.67

 
40.20

 
41.66

Allowance for loan losses to nonaccrual loans (1)
80.99

 
39.01

 
47.75

 
48.99

 
51.55

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


Page 6

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


 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
 
 
 
30 – 59 days past due
$
8,100

 
$
3,810

 
$
1,448

 
$
14,131

 
$
11,305

60 – 89 days past due
2,652

 
230

 
108

 
157

 
2,410

Matured Loans
3,550

 
7,801

 
2,553

 
10,008

 
15,582

 
$
14,302

 
$
11,841

 
$
4,109

 
$
24,296

 
$
29,297

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
20,588

 
$
30,878

 
$
31,638

 
$
31,726

 
$
28,778

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(7,958
)
 
(3,145
)
 
(591
)
 
(672
)
 
(2,689
)
Multi–family mortgage loans
(4,355
)
 
(2,159
)
 
(135
)
 
(554
)
 
(1,893
)
Nonresidential real estate loans
(10,097
)
 
(5,435
)
 
(2,202
)
 
(433
)
 
(686
)
Construction and land loans
(3,273
)
 
(806
)
 
(185
)
 
(47
)
 
(249
)
Commercial loans
(1,255
)
 
(3,536
)
 
(31
)
 
(138
)
 
(1,352
)
Commercial leases
(53
)
 
(68
)
 

 

 
(72
)
Consumer loans
(8
)
 
(72
)
 
(11
)
 
(12
)
 
(6
)
 
(26,999
)
 
(15,221
)
 
(3,155
)
 
(1,856
)
 
(6,947
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
41

 
7

 
74

 
111

 
11

Multi–family mortgage loans
48

 
11

 
96

 
384

 
1

Nonresidential real estate loans
6

 
7

 
284

 
31

 
5

Construction and land loans
2

 
6

 
58

 
184

 

Commercial loans
16

 
421

 
132

 
57

 
135

Commercial leases

 

 

 

 

Consumer loans
5

 
26

 
6

 
5

 
3

 
118

 
478

 
650

 
772

 
155

Net charge–offs
(26,881
)
 
(14,743
)
 
(2,505
)
 
(1,084
)
 
(6,792
)
Provision for loan losses
24,328

 
4,453

 
1,745

 
996

 
9,740

Ending balance
$
18,035

 
$
20,588

 
$
30,878

 
$
31,638

 
$
31,726

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

 
5.24

 
0.85

 
0.35

 
2.11

(1)
Annualized


Page 7

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


 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,503,759

 
$
1,504,438

 
$
1,525,626

 
$
1,541,815

 
$
1,614,989

Total average interest–earning assets
1,416,629

 
1,419,829

 
1,440,147

 
1,454,117

 
1,483,656

Average loans
1,078,708

 
1,125,600

 
1,184,803

 
1,236,234

 
1,285,153

Average securities
80,485

 
74,260

 
77,077

 
88,448

 
95,120

Average stock in FHLB
8,761

 
9,614

 
10,741

 
13,868

 
16,346

Average other interest–earning assets
248,675

 
210,355

 
167,526

 
115,567

 
87,037

Total average interest–bearing liabilities
1,149,888

 
1,149,304

 
1,166,111

 
1,187,446

 
1,207,554

Average interest–bearing deposits
1,143,586

 
1,141,855

 
1,156,355

 
1,178,263

 
1,198,045

Average borrowings
6,302

 
7,449

 
9,756

 
9,183

 
9,509

Average stockholders’ equity
198,908

 
204,857

 
204,709

 
202,935

 
249,659

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.88
%
 
4.05
%
 
4.42
%
 
4.60
%
 
4.64
%
Average loans
4.91

 
4.94

 
5.20

 
5.24

 
5.18

Average securities
1.55

 
1.83

 
2.02

 
2.01

 
2.12

Average other interest–earning assets
0.41

 
0.26

 
0.28

 
0.25

 
0.27

Total average interest–bearing liabilities
0.26

 
0.36

 
0.38

 
0.42

 
0.45

Average interest–bearing deposits
0.36

 
0.35

 
0.38

 
0.41

 
0.45

Average borrowings
1.52

 
1.39

 
1.15

 
1.14

 
1.21

Net interest rate spread
3.51

 
3.69

 
4.04

 
4.18

 
4.19

Net interest margin
3.58

 
3.76

 
4.11

 
4.26

 
4.28

(1)     Annualized

Page 8

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


 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
11.67
%
 
13.20
%
 
13.33
%
 
13.05
%
 
12.78
%
Tangible equity to tangible total assets (end of period)
11.49
%
 
13.02
%
 
13.14
%
 
12.85
%
 
12.58
%
Risk–based total capital ratio
18.01
%
 
19.53
%
 
19.16
%
 
17.93
%
 
17.02
%
Risk–based tier 1 capital ratio
16.75
%
 
18.27
%
 
17.90
%
 
16.67
%
 
15.76
%
Tier 1 leverage ratio
11.43
%
 
12.95
%
 
13.07
%
 
12.79
%
 
12.30
%
Tier 1 capital
$
168,734

 
$
193,517

 
$
198,213

 
$
197,319

 
$
194,847

BankFinancial FSB
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
15.32
%
 
16.96
%
 
16.67
%
 
15.56
%
 
14.72
%
Risk–based tier 1 capital ratio
14.07

 
15.70

 
15.40

 
14.29

 
13.45

Tier 1 leverage ratio
9.60

 
11.13

 
11.25

 
10.97

 
10.48

Tier 1 capital
$
141,629

 
$
166,248

 
$
170,573

 
$
169,242

 
$
166,406

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
7.42

 
8.79

 
7.53

 
6.62

 
5.52

High
8.85

 
9.24

 
7.56

 
7.05

 
8.89

Low
6.62

 
7.31

 
5.66

 
5.25

 
5.26

Book value per share
8.20

 
9.40

 
9.64

 
9.59

 
9.48

Tangible book value per share
8.06

 
9.24

 
9.47

 
9.42

 
9.31

Cash dividends declared on common stock
$

 
$
0.01

 
$
0.01

 
$
0.01

 
$
0.01

Stock repurchases
$

 
$

 
$

 
$

 
$

Stock repurchases – shares

 

 

 

 

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(25,022
)
 
$
(5,222
)
 
$
798

 
$
2,337

 
$
(47,049
)
Average common shares outstanding
21,072,966

 
21,072,966

 
21,072,966

 
21,072,966

 
21,072,966

Less: Unearned ESOP shares
(1,133,374
)
 
(1,157,974
)
 
(1,209,023
)
 
(1,233,359
)
 
(1,257,911
)
Unvested restricted stock shares

 

 
(3,524
)
 
(4,334
)
 
(7,866
)
Weighted average common shares outstanding
19,939,592

 
19,914,992

 
19,860,419

 
19,835,273

 
19,807,189

Plus: Dilutive common shares equivalents

 

 

 
807

 

Weighted average dilutive common shares outstanding
19,939,592

 
19,914,992

 
19,860,419

 
19,836,080

 
19,807,189

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

 
141,000

 
1,881,053

 
2,055,553

 
2,075,553

Weighted average exercise price of anti–dilutive options
$

 
$
17.21

 
$
16.58

 
$
16.53

 
$
16.54

Basic earnings (loss) per common share
$
(1.25
)
 
$
(0.26
)
 
$
0.04

 
$
0.12

 
$
(2.38
)
Diluted earnings (loss) per common share
$
(1.25
)
 
$
(0.26
)
 
$
0.04

 
$
0.12

 
$
(2.38
)


Page 9


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



Page 10

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

FOR THE THREE MONTHS AND YEAR PERIODS
ENDED DECEMBER 31, 2012 and 2011
 
Three months ended
December 31,
 
Year ended
December 31,
 
2012
 
2011
 
2012
 
2011
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
Loss before income taxes
$
(25,022
)
 
$
(31,939
)
 
$
(27,109
)
 
$
(36,321
)
Provision for loan losses
24,328

 
9,740

 
31,522

 
22,723

 
(694
)
 
(22,199
)
 
4,413

 
(13,598
)
Adjustments:
 
 
 
 
 
 
 
Nonperforming asset management
1,126

 
1,430

 
5,211

 
4,431

Loss on sale of other real estate owned
379

 
113

 
253

 
15

Valuation adjustments of other real estate owned
1,783

 
2,482

 
5,560

 
3,970

Operations of other real estate owned
344

 
844

 
1,678

 
2,350

Acquisition expenses

 

 

 
1,761

Goodwill impairment

 
23,862

 

 
23,862

Adjustments
3,632

 
28,731

 
12,702

 
36,389

Pre–tax pre–provision earnings from core operations
$
2,938

 
$
6,532

 
$
17,115

 
$
22,791

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



Page 11

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

FOR THE LATEST FIVE QUARTERS
 
2012
 
2011
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
Pre–tax pre–provision earnings from core operations
 
 
 
 
 
 
 
 
Income (loss) before income taxes
$
(25,022
)
 
$
(5,222
)
 
$
341

 
$
2,794

 
$
(31,939
)
Provision for loan losses
24,328

 
4,453

 
1,745

 
996

 
9,740

 
(694
)
 
(769
)
 
2,086

 
3,790

 
(22,199
)
Adjustments:
 
 
 
 
 
 
 
 
 
Nonperforming asset management
1,126

 
1,728

 
1,117

 
1,240

 
1,430

Loss (gain) on sale of other real estate owned
379

 
(42
)
 
54

 
(138
)
 
113

Valuation adjustments of other real estate owned
1,783

 
2,352

 
1,036

 
389

 
2,482

Operations of other real estate owned
344

 
432

 
601

 
301

 
844

Goodwill impairment

 

 

 

 
23,862

Adjustments
3,632

 
4,470

 
2,808

 
1,792

 
28,731

Pre–tax pre–provision earnings from core operations
$
2,938

 
$
3,701

 
$
4,894

 
$
5,582

 
$
6,532

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


Page 12