BankFinancial CORP - FORM 8-K - EX-99.2 - EXHIBIT

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8-K - 8-K - BankFinancial CORP	bfin201403318k.htm
EX-99.1 - EXHIBIT - BankFinancial CORP	bfin20140430exhibit991pr.htm

Exhibit 99.2

BANKFINANCIAL CORPORATION

FIRST QUARTER 2014

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)



	2014			2013
	IQ			IVQ			IIIQ			IIQ			IQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾	0.26		%	0.42		%	0.29		%	0.02		%	0.19		%
Return on equity (ratio of net income to average equity)⁽¹⁾	2.12			3.43			2.38			0.17			1.55
Net interest rate spread ⁽¹⁾	3.30			3.25			3.21			3.25			3.39
Net interest margin ⁽¹⁾	3.34			3.31			3.26			3.31			3.45
Efficiency ratio	88.79			97.51			95.36			97.84			90.51
Noninterest expense to average total assets⁽¹⁾	3.15			3.53			3.43			3.51			3.65
Average interest–earning assets to average interest–bearing liabilities	121.85			121.97			121.95			121.24			120.81
Number of full service offices	19			20			20			20			20
Employees (full time equivalents)	281			301			308			308			347

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	13,869		$	15,781		$	18,068		$	18,303		$	17,742
Interest-bearing deposits in other financial institutions	137,855			145,176			225,410			293,790			293,386
Securities, at fair value	115,977			110,907			83,409			53,014			61,273
Loans held for sale	—			—			15			276			55
Loans receivable, net	1,097,888			1,098,077			1,035,331			1,012,316			1,004,404
Other real estate owned, net	8,670			6,306			5,403			6,262			8,088
Stock in Federal Home Loan Bank, at cost	6,068			6,068			6,068			6,068			7,566
Premises and equipment, net	34,882			35,328			36,154			36,830			37,530
Intangible assets	2,284			2,433			2,583			2,732			2,882
Bank owned life insurance	22,022			21,958			21,881			21,797			21,715
FDIC prepaid expense	—			—			—			—			2,188
Other assets	9,027			11,560			7,626			9,744			9,306
Total assets	$	1,448,542		$	1,453,594		$	1,441,948		$	1,461,132		$	1,466,135

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,252,819		$	1,252,708		$	1,249,833		$	1,262,096		$	1,271,550
Borrowings	2,668			3,055			2,883			2,940			2,740
Other liabilities	16,191			22,204			14,921			22,867			18,206
Total liabilities	1,271,678			1,277,967			1,267,637			1,287,903			1,292,496
Stockholders’ equity	176,864			175,627			174,311			173,229			173,639
Total liabilities and stockholders’ equity	$	1,448,542		$	1,453,594		$	1,441,948		$	1,461,132		$	1,466,135

(1)Annualized

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2014			2013
	IQ			IVQ			IIIQ			IIQ			IQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	12,086		$	12,296		$	12,107		$	12,276		$	12,713
Total interest expense	812			842			882			935			994
Net interest income before provision	11,274			11,454			11,225			11,341			11,719
Provision for (recovery of) loan losses	476			(1,178		)	(437		)	206			722
Net interest income	10,798			12,632			11,662			11,135			10,997
Noninterest income	1,532			1,665			1,737			1,703			3,029
Noninterest expense	11,371			12,792			12,360			12,762			13,348
Income before income tax	959			1,505			1,039			76			678
Income tax expense	17			—			—			—			—
Net income	$	942		$	1,505		$	1,039		$	76		$	678
Basic earnings per common share	$	0.05		$	0.07		$	0.05		$	—		$	0.03
Diluted earnings per common share	$	0.05		$	0.07		$	0.05		$	—		$	0.03

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	433		$	477		$	520		$	509		$	499
Other fee income	527			537			571			604			538
Insurance commissions and annuities income	87			173			106			86			109
Gain (loss) on sales of loans, net	24			24			32			(4		)	1,417
Loss on sale of securities	(7		)	—			—			—			—
Gain (loss) on disposition of premises and equipment	2			(43		)	—			—			—
Loan servicing fees	104			112			112			114			123
Amortization of servicing assets	(32		)	(40		)	(49		)	(85		)	(59		)
Recovery (impairment) of servicing assets	(4		)	24			6			9			26
Earnings on bank owned life insurance	64			77			84			82			70
Trust income	164			175			172			183			181
Other	170			149			183			205			125
Total noninterest income	$	1,532		$	1,665		$	1,737		$	1,703		$	3,029

Noninterest Expense
Compensation and benefits	$	5,958		$	6,614		$	6,143		$	6,686		$	6,752
Office occupancy and equipment	1,914			1,997			1,797			1,805			1,948
Advertising and public relations	162			316			195			268			146
Information technology	639			697			817			819			758
Supplies, telephone, and postage	391			463			382			400			452
Amortization of intangibles	149			150			149			150			156
Nonperforming asset management	104			607			682			655			694
Loss (gain) on sales of other real estate owned	6			(34		)	64			49			69
Valuation adjustments of other real estate owned	44			79			241			141			89
Operations of other real estate owned	207			159			171			232			353
FDIC insurance premiums	479			468			476			477			492
Other	1,318			1,276			1,243			1,080			1,439
Total noninterest expense	$	11,371		$	12,792		$	12,360		$	12,762		$	13,348

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2014			2013
	IQ			IVQ			IIIQ				IIQ				IQ
LOANS
One–to–four family residential real estate loans	$	197,831		$	201,382		$	204,205			$	200,181			$	209,540
Multi–family mortgage loans	416,356			396,058			375,786				353,924				338,502
Nonresidential real estate loans	251,873			263,567			246,524				255,429				261,207
Construction and land loans	3,396			6,570			6,429				7,152				6,933
Commercial loans	53,661			54,255			52,978				51,701				55,362
Commercial leases	185,474			187,112			161,822				157,606				147,168
Consumer loans	2,476			2,317			2,561				2,622				2,414
	1,111,067			1,111,261			1,050,305				1,028,615				1,021,126
Net deferred loan origination costs	1,002			970			902				798				731
Allowance for loan losses	(14,181		)	(14,154		)	(15,876		)		(17,097		)		(17,453		)
Loans, net	$	1,097,888		$	1,098,077		$	1,035,331			$	1,012,316			$	1,004,404

LOAN ORIGINATIONS ⁽¹⁾
One–to–four family residential real estate loans	$	2,548		$	6,316		$	13,425		3,670,000	$	3,670		4,601,000	$	4,601
Multi–family mortgage loans	24,419			37,351			46,675			38,606,000	28,606			6,308,000	6,308
Nonresidential real estate loans	6,088			26,009			4,185			6,017,000	6,017			9,298,000	9,298
Construction and land loans	—			1,118			1,015			366,000	366			55,000	55
Commercial loans	49,659			56,222			44,811			43,735,000	43,735			45,719,000	45,719
Commercial leases	22,870			47,101			27,192			30,854,000	30,854			30,047,000	30,047
Consumer loans	870			962			970			1,090,000	1,090			874,000	874
	$	106,454		$	175,079		$	138,273			$	114,338			$	96,902

LOAN PAYMENTS and PAYOFFS⁽²⁾
One–to–four family residential real estate loans	$	5,811		$	8,749		$	9,012			$	10,934			$	13,146
Multi–family mortgage loans	6,539			13,966			23,678				16,035				19,683
Nonresidential real estate loans	12,663			9,673			14,042				9,853				12,163
Construction and land loans	791			979			1,376				140				742
Commercial loans	48,638			54,744			43,760				46,851				51,801
Commercial leases	26,097			19,480			23,402				20,448				24,711
Consumer loans	1,057			951			1,036				912				886
	$	101,596		$	108,542		$	116,306			$	105,173			$	123,132

LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) ⁽²⁾
One–to–four family residential real estate loans	$	28		$	1,022		$	932			$	2,481			$	1,151
Multi–family mortgage loans	2,724			1,651			13,311				7,912				4,058
Nonresidential real estate loans	6,899			3,055			9,659				7,803				4,698
Construction and land loans	748			926			1,303				90				692
Commercial loans	4,441			6,262			4,079				3,366				6,829
Commercial leases	26			35			26				30				30
Consumer loans	2			—			—				—				2
	$	14,868		$	12,951		$	29,310			$	21,682			$	17,460

(1) Loan originations include 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)



	2014			2013
	IQ			IVQ			IIIQ			IIQ			IQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate loans	$	5,008		$	4,641		$	5,398		$	5,399		$	5,988
Multi–family mortgage loans	6,617			7,098			11,913			12,204			10,822
Nonresidential real estate loans	8,715			4,214			5,335			7,037			6,182
Construction and land loans	269			382			1,018			1,601			1,575
Commercial loans	77			77			272			689			883
Commercial leases	8			—			—			—			—
Consumer loans	—			12			2			1			11
Nonaccrual loans	20,694			16,424			23,938			26,931			25,461

Loans past due over 90 days, still accruing	—			228			965			234			243
Loans held for sale	—			—			15			15			15

Other real estate owned:
One–to–four family residential real estate loans	1,098			901			808			1,316			1,515
Multi–family real estate	3,220			1,921			195			—			—
Nonresidential real estate	2,086			1,181			1,047			1,757			2,896
Land	258			275			919			933			1,144
Other real estate owned	6,662			4,278			2,969			4,006			5,555
Nonperforming assets (excluding purchase impaired loans and purchased other real estate owned)	27,356			20,930			27,887			31,186			31,274

Purchased impaired loans:
One–to–four family residential real estate loans	$	101		$	100		$	405		$	396		$	388
Nonresidential real estate loans	153			1,633			1,611			1,607			2,554
Construction and land loans	—			—			—			997			1,021
Commercial loans	23			23			22			21			21
Purchased impaired loans	277			1,756			2,038			3,021			3,984
Purchased other real estate owned:
One–to–four family residential real estate	156			176			201			179			205
Nonresidential real estate	—			—			372			372			372
Land	1,852			1,852			1,861			1,705			1,956
Purchased other real estate owned	2,008			2,028			2,434			2,256			2,533
Purchased impaired loans and OREO	2,285			3,784			4,472			5,277			6,517
Nonperforming assets	$	29,641		$	24,714		$	32,359		$	36,463		$	37,791

Asset Quality Ratios
Nonperforming assets to total assets	2.05		%	1.70		%	2.24		%	2.50		%	2.58		%
Nonperforming assets to total assets ⁽¹⁾	1.89			1.44			1.93			2.13			2.13
Nonaccrual loans to total loans	1.89			1.66			2.57			2.94			2.91
Nonaccrual loans to total loans ⁽¹⁾	1.86			1.50			2.37			2.64			2.52
Allowance for loan losses to nonperforming loans	67.62			76.89			58.90			56.61			58.76
Allowance for loan losses to nonperforming loans⁽¹⁾	68.53			85.00			63.71			62.90			67.86


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

Page 5

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2014			2013
	IQ			IVQ			IIIQ			IIQ			IQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate loans	$	3,690		$	2,634		$	1,597		$	1,546		$	2,983
Multi–family mortgage loans	5,906			5,063			7,028			10,476			13,935
Nonresidential real estate loans	7,454			13,645			15,427			16,185			17,176
Construction and land loans	109			832			1,062			1,628			1,707
Commercial loans	952			977			1,061			1,083			1,817
Commercial leases	184			210			—			—			—
Consumer loans	1			1			—			—			—
	$	18,296		$	23,362		$	26,175		$	30,918		$	37,618

PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
30 – 59 days past due	$	4,131		$	5,574		$	1,706		$	2,001		$	4,539
60 – 89 days past due	1,277			1,535			1,268			268			425
Matured Loans	2,913			3,458			2,740			1,839			2,670
	$	8,321		$	10,567		$	5,714		$	4,108		$	7,634

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	14,154		$	15,876		$	17,097		$	17,453		$	18,035
Charge offs:
One–to–four family residential real estate loans	(56		)	(432		)	(528		)	(176		)	(369		)
Multi–family mortgage loans	(90		)	(320		)	(902		)	(374		)	(236		)
Nonresidential real estate loans	(580		)	(207		)	(138		)	(153		)	(79		)
Construction and land loans	—			—			(16		)	—			(927		)
Commercial loans	(22		)	(62		)	(131		)	(213		)	(19		)
Consumer loans	(6		)	(5		)	(38		)	(12		)	—
	(754		)	(1,026		)	(1,753		)	(928		)	(1,630		)
Recoveries:
One–to–four family residential real estate loans	11			12			108			85			242
Multi–family mortgage loans	14			17			3			159			57
Nonresidential real estate loans	20			68			329			103			19
Construction and land loans	250			267			193			1			2
Commercial loans	8			114			335			16			5
Consumer loans	2			4			1			2			1
	305			482			969			366			326
Net charge–offs	(449		)	(544		)	(784		)	(562		)	(1,304		)
Provision for (recovery of) loan losses	476			(1,178		)	(437		)	206			722
Ending balance	$	14,181		$	14,154		$	15,876		$	17,097		$	17,453

Allowance for loan losses to total loans	1.28		%	1.27		%	1.51		%	1.66		%	1.71		%
Net charge–off ratio ⁽¹⁾	0.16			0.20			0.31			0.22			0.51


(1)	Annualized

Page 6

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2014			2013
	IQ			IVQ			IIIQ			IIQ			IQ
DEPOSITS
Noninterest–bearing demand	$	129,732		$	126,680		$	133,094		$	137,146		$	131,856
Savings deposits	156,174			149,602			146,685			147,758			148,184
Money market accounts	353,656			347,017			341,175			340,243			345,591
Interest–bearing NOW accounts	353,338			353,787			349,622			349,942			348,059
Certificates of deposits	259,919			275,622			279,257			287,007			297,860
	$	1,252,819		$	1,252,708		$	1,249,833		$	1,262,096		$	1,271,550
SELECTED AVERAGE BALANCES
Total average assets	$	1,442,667		$	1,450,403		$	1,440,561		$	1,453,413		$	1,462,119
Total average interest–earning assets	1,367,225			1,374,544			1,364,625			1,373,855			1,379,156
Average loans	1,114,433			1,061,829			1,019,402			1,014,591			1,028,907
Average securities	115,089			92,223			68,109			57,022			73,284
Average stock in FHLB	6,068			6,068			6,068			6,809			8,026
Average other interest–earning assets	131,635			214,424			271,046			295,433			268,939
Total average interest–bearing liabilities	1,122,027			1,126,973			1,118,967			1,133,159			1,141,625
Average interest–bearing deposits	1,119,445			1,123,977			1,116,154			1,130,294			1,138,438
Average borrowings	2,582			2,996			2,813			2,865			3,187
Average stockholders’ equity	177,331			175,305			174,790			174,643			174,766

SELECTED YIELDS AND COST OF FUNDS ^(1):
Total average interest–earning assets	3.59		%	3.55		%	3.52		%	3.58		%	3.74		%
Average loans	4.26			4.44			4.55			4.69			4.84
Average securities	1.04			1.17			1.40			1.54			1.39
Average other interest–earning assets	0.27			0.26			0.27			0.27			0.27
Total average interest–bearing liabilities	0.29			0.30			0.31			0.33			0.35
Average interest–bearing deposits	0.29			0.30			0.31			0.33			0.35
Average borrowings	0.31			0.26			0.28			0.28			1.02
Net interest rate spread	3.30			3.25			3.21			3.25			3.39
Net interest margin	3.34			3.31			3.26			3.31			3.45

(1) Annualized

Page 7

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2014			2013
	IQ			IVQ			IIIQ			IIQ			IQ
CAPITAL RATIOS
BankFinancial Corporation
Equity to total assets (end of period)	12.21		%	12.08		%	12.09		%	11.86		%	11.84		%
Tangible equity to tangible total assets (end of period)	12.07			11.93			11.93			11.69			11.67
Risk–based total capital ratio	17.52			17.28			18.15			18.38			18.59
Risk–based tier 1 capital ratio	16.27			16.03			16.90			17.12			17.33
Tier 1 leverage ratio	12.05			11.92			11.91			11.66			11.62
Tier 1 capital	$	174,580		$	172,775		$	171,269		$	169,823		$	169,763
BankFinancial FSB
Risk–based total capital ratio	15.17		%	14.93		%	15.58		%	15.74		%	15.84		%
Risk–based tier 1 capital ratio	13.92			13.68			14.33			14.48			14.59
Tier 1 leverage ratio	10.31			10.16			10.10			9.86			9.77
Tier 1 capital	$	148,943		$	147,363		$	145,203		$	143,589		$	142,861

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	9.98		$	9.16		$	8.84		$	8.50		$	8.09
High	10.33			9.74			9.40			8.71			8.40
Low	9.06			8.70			8.15			7.25			7.19
Book value per share	$	8.38		$	8.32		$	8.26		$	8.21		$	8.24
Tangible book value per share	$	8.27		$	8.21		$	8.14		$	8.08		$	8.10
Cash dividends declared on common stock	$	—		$	0.02		$	—		$	0.02		$	—
Stock repurchases	$	—		$	—		$	—		$	—		$	—
Stock repurchases – shares	—			—			—			—			—

EARNINGS PER SHARE COMPUTATIONS
Net income	$	942		$	1,505		$	1,039		$	76		$	678
Average common shares outstanding	21,101,966			21,101,966			21,101,966			21,088,263			21,072,966
Less: Unearned ESOP shares	(977,561		)	(1,002,041		)	(1,028,158		)	(1,084,709		)	(1,108,938		)
Unvested restricted stock shares	(25,750		)	(25,750		)	(25,750		)	(13,797		)	—
Weighted average common shares outstanding	20,098,655			20,074,175			20,048,058			19,989,757			19,964,028
Plus: Dilutive common shares equivalents	12,045			9,500			6,034			556			—
Weighted average dilutive common shares outstanding	20,110,700			20,083,675			20,054,092			19,990,313			19,964,028
Basic earnings (loss) per common share	$	0.05		$	0.08		$	0.05		$	—		$	0.03
Diluted earnings (loss) per common share	$	0.05		$	0.08		$	0.05		$	—		$	0.03

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 core operations and pre–tax pre–provision earnings from core operations to average total assets. Management believes that by excluding gain on sale of owner-occupied and investor-owned one-to-four family residential loans that we designated as held for sale from noninterest income, and other real estate owned related income and expense items and nonperforming asset management expenses from noninterest expense, these measures better reflect our core operating performance.

Page 9

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE LATEST FIVE QUARTERS



	2014			2013
	IQ			IVQ			IIIQ			IIQ			IQ
Pre–tax pre–provision earnings from core operations
Income (loss) before income taxes	$	959		$	1,505		$	1,039		$	76		$	678
Provision for (recovery of) loan losses	476			(1,178		)	(437		)	206			722
	1,435			327			602			282			1,400
Adjustments:
Gain on sale of owner-occupied and investor-owned one-to-four family residential loans designated as held for sale	—			—			—			(40		)	(1,300		)
Nonperforming asset management	104			607			682			655			694
Loss (gain) on sale of other real estate owned	6			(34		)	64			49			69
Valuation adjustments of other real estate owned	44			79			241			141			89
Operations of other real estate owned	207			159			171			232			353
	361			811			1,158			1,037			(95		)
Pre–tax pre–provision earnings from core operations	$	1,796		$	1,138		$	1,760		$	1,319		$	1,305

Pre–tax pre–provision earnings from core operations to average total assets (1)	0.50		%	0.31		%	0.49		%	0.36		%	0.36		%


(1)	Annualized

Page 10

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