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

Attached files

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EX-99.1 - EXHIBIT 99.1 - BankFinancial CORP	bfin201609ex991earningspr.htm
8-K - 8-K - BankFinancial CORP	bfin2016098kresults.htm

Exhibit 99.2

BANKFINANCIAL CORPORATION

THIRD QUARTER 2016

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)



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾	0.66		%	0.22		%	0.50		%	0.58		%	0.65		%
Return on equity (ratio of net income to average equity)⁽¹⁾	4.86			1.59			3.59			3.96			4.41
Net interest rate spread ⁽¹⁾	3.23			3.21			3.30			3.35			3.33
Net interest margin ⁽¹⁾	3.33			3.31			3.39			3.43			3.40
Efficiency ratio	73.60			79.80			80.98			83.16			77.77
Noninterest expense to average total assets⁽¹⁾	2.62			2.78			2.89			3.08			2.85
Average interest–earning assets to average interest–bearing liabilities	134.36			136.17			136.26			138.91			134.89
Number of full service offices	19			19			19			19			19
Employees (full time equivalents)	242			253			255			251			264

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	9,499		$	11,509		$	10,238		$	13,192		$	8,809
Interest-bearing deposits in other financial institutions	91,031			74,048			55,705			46,185			52,661
Securities, at fair value	99,899			105,698			111,386			114,753			104,242
Loans receivable, net	1,241,808			1,207,553			1,232,485			1,232,257			1,162,298
Other real estate owned, net	4,381			5,373			5,629			7,011			4,809
Stock in Federal Home Loan Bank, at cost	6,257			6,257			6,257			6,257			6,257
Premises and equipment, net	31,856			32,021			32,308			32,726			33,063
Intangible assets	911			1,040			1,169			1,305			1,441
Bank owned life insurance	22,538			22,484			22,438			22,387			22,335
Deferred taxes	23,715			25,187			25,641			26,695			27,733
Other assets	8,378			8,661			8,552			9,675			7,775
Total assets	$	1,540,273		$	1,499,831		$	1,511,808		$	1,512,443		$	1,431,423

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,316,695		$	1,268,602		$	1,264,689		$	1,212,919		$	1,181,534
Borrowings	1,406			1,469			17,621			64,318			18,048
Other liabilities	18,505			23,053			20,010			22,842			18,767
Total liabilities	1,336,606			1,293,124			1,302,320			1,300,079			1,218,349
Stockholders’ equity	203,667			206,707			209,488			212,364			213,074
Total liabilities and stockholders’ equity	$	1,540,273		$	1,499,831		$	1,511,808		$	1,512,443		$	1,431,423

(1)Annualized

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	12,845		$	12,581		$	12,759		$	12,411		$	12,147
Total interest expense	1,014			952			856			738			699
Net interest income before provision (recovery)	11,831			11,629			11,903			11,673			11,448
Provision for (recovery of) loan losses	(525		)	1,315			(490		)	(1,038		)	(956		)
Net interest income	12,356			10,314			12,393			12,711			12,404
Noninterest income	1,637			1,537			1,594			1,757			1,709
Noninterest expense	9,912			10,506			10,930			11,169			10,232
Income before income tax	4,081			1,345			3,057			3,299			3,881
Income tax expense	1,573			514			1,153			1,183			1,532
Net income	$	2,508		$	831		$	1,904		$	2,116		$	2,349
Basic earnings per common share	$	0.13		$	0.04		$	0.10		$	0.11		$	0.12
Diluted earnings per common share	$	0.13		$	0.04		$	0.10		$	0.11		$	0.12

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	583		$	541		$	567		$	603		$	648
Other fee income	478			505			495			505			502
Insurance commissions and annuities income	53			72			55			169			68
Gain on sales of loans, net	38			3			18			10			37
Gain on sale of securities	—			—			46			—			—
Loan servicing fees	66			75			73			83			85
Amortization of servicing assets	(28		)	(40		)	(28		)	(32		)	(35		)
Recovery (impairment) of servicing assets	—			3			(3		)	(1		)	(15		)
Earnings on bank owned life insurance	54			46			51			52			48
Trust income	167			165			160			183			172
Other	226			167			160			185			199
Total noninterest income	$	1,637		$	1,537		$	1,594		$	1,757		$	1,709

Noninterest Expense
Compensation and benefits	$	5,315		$	5,713		$	5,993		$	6,034		$	5,329
Office occupancy and equipment	1,487			1,635			1,647			1,620			1,537
Advertising and public relations	144			252			222			208			212
Information technology	707			699			724			687			686
Supplies, telephone, and postage	345			297			376			397			393
Amortization of intangibles	129			129			136			136			136
Nonperforming asset management	89			127			84			239			244
Loss (gain) on sales of other real estate owned	(15		)	(38		)	38			33			(11		)
Valuation adjustments of other real estate owned	115			10			119			81			231
Operations of other real estate owned	143			177			219			169			114
FDIC insurance premiums	238			236			217			205			202
Other	1,215			1,269			1,155			1,360			1,159
Total noninterest expense	$	9,912		$	10,506		$	10,930		$	11,169		$	10,232

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
LOANS
One–to–four family residential real estate loans	$	142,130		$	147,876		$	154,588		$	159,501		$	164,124
Multi–family mortgage loans	505,369			504,158			513,450			506,026			478,057
Nonresidential real estate loans	186,504			191,685			219,339			226,735			223,528
Construction and land loans	1,005			1,767			1,799			1,313			1,322
Commercial loans	106,878			84,951			76,325			79,516			80,216
Commercial leases	304,753			282,629			272,849			265,405			221,622
Consumer loans	1,846			1,744			1,890			1,831			1,927
	1,248,485			1,214,810			1,240,240			1,240,327			1,170,796
Net deferred loan origination costs	1,657			1,658			1,661			1,621			1,583
Allowance for loan losses	(8,334		)	(8,915		)	(9,416		)	(9,691		)	(10,081		)
Loans, net	$	1,241,808		$	1,207,553		$	1,232,485		$	1,232,257		$	1,162,298

LOAN ORIGINATIONS ⁽¹⁾
One–to–four family residential real estate loans	$	2,322		$	2,279		$	1,637		$	2,657		$	3,267
Multi–family mortgage loans	25,062			18,017			24,385			43,110			16,302
Nonresidential real estate loans	3,518			3,587			5,002			20,408			4,025
Construction and land loans	92			—			198			—			—
Commercial loans	67,919			54,149			35,771			44,293			56,950
Commercial leases	54,717			54,633			39,303			71,201			26,866
Consumer loans	883			1,025			588			725			711
	$	154,513		$	133,690		$	106,884		$	182,394		$	108,121

LOAN PAYMENTS and PAYOFFS⁽²⁾
One–to–four family residential real estate loans	$	7,245		$	8,500		$	6,413		$	7,471		$	9,963
Multi–family mortgage loans	24,276			27,188			17,082			13,559			18,939
Nonresidential real estate loans	8,740			30,024			11,878			12,748			5,523
Construction and land loans	852			33			57			41			232
Commercial loans	45,990			45,528			39,030			45,460			38,079
Commercial leases	31,437			48,774			31,552			26,353			28,104
Consumer loans	801			1,080			664			701			738
	$	119,341		$	161,127		$	106,676		$	106,333		$	101,578

LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) ⁽²⁾
One–to–four family residential real estate loans	$	220		$	778		$	441		$	363		$	1,424
Multi–family mortgage loans	1,155			4,163			5,117			2,199			7,666
Nonresidential real estate loans	500			19,164			409			784			335
Construction and land loans	828			—			24			8			24
Commercial loans	6,037			12,243			7,861			4,873			4,120
Commercial leases	203			197			194			—			—
	$	8,943		$	36,545		$	14,046		$	8,227		$	13,569

(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)



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans ⁽¹⁾:
One–to–four family residential real estate loans	$	2,691		$	2,625		$	3,370		$	2,455		$	2,952
Multi–family mortgage loans	508			1,021			953			821			1,399
Nonresidential real estate loans	717			754			295			296			2,263
Construction and land loans	—			—			803			—			—
Commercial loans	—			—			—			—			75
Nonaccrual loans	3,916			4,400			5,421			3,572			6,689

Loans past due over 90 days, still accruing	—			828			—			—			—

Other real estate owned ⁽²⁾:
One–to–four family residential real estate loans	2,281			2,433			2,619			2,621			325
Multi–family real estate	393			737			737			951			1,474
Nonresidential real estate	780			1,065			1,135			1,747			1,289
Land ⁽³⁾	927			1,138			1,138			1,692			1,721
Other real estate owned	4,381			5,373			5,629			7,011			4,809

Nonperforming assets	$	8,297		$	10,601		$	11,050		$	10,583		$	11,498

Asset Quality Ratios
Nonperforming assets to total assets	0.54		%	0.71		%	0.73		%	0.70		%	0.80		%
Nonaccrual loans to total loans	0.31			0.43			0.44			0.29			0.57
Nonaccrual commercial-related loans to total commercial-related loans ⁽⁴⁾	0.11			0.24			0.19			0.10			0.37
Nonaccrual residential and consumer loans to total residential and consumer loans	1.87			1.75			2.15			1.52			1.78
Allowance for loan losses to nonperforming loans	212.82			170.52			173.69			271.30			150.71


(1)	Purchased impaired loans are combined with nonaccrual loans in the above table.


(2)	Other real estate owned acquired from the Downers Grove National Bank merger are included in the above table.


(3)	Other real estate owned (land) acquired from the Downers Grove National Bank merger totaled $ 892,000 at September 30, 2016, $1.1 million at June 30, 2016 and March 31, 2016, $1.7 million at December 31, 2015 and September 30, 2015.


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

Page 5

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate loans	$	475		$	335		$	440		$	847		$	429
Multi–family mortgage loans	2,119			2,025			3,347			5,167			6,254
Nonresidential real estate loans	2,407			3,194			4,981			4,981			5,259
Construction and land loans	—			830			—			842			819
Commercial loans	75			225			137			614			703
Consumer loans	—			2			—			—			—
	$	5,076		$	6,611		$	8,905		$	12,451		$	13,464

PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
30 – 59 days past due	$	685		$	171		$	3,012		$	2,036		$	63
60 – 89 days past due	419			71			30			926			816
Matured Loans	784			277			1,387			1,467			224
	$	1,888		$	519		$	4,429		$	4,429		$	1,103

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	8,915		$	9,416		$	9,691		$	10,081		$	10,810
Charge offs:
One–to–four family residential real estate loans	(102		)	(355		)	(52		)	(59		)	(125		)
Multi–family mortgage loans	—			(6		)	(45		)	(9		)	(9		)
Nonresidential real estate loans	(55		)	(1,657		)	(3		)	(102		)	(26		)
Commercial loans	—			—			—			(54		)	—
Consumer loans	(6		)	(2		)	(16		)	(5		)	(3		)
	(163		)	(2,020		)	(116		)	(229		)	(163		)
Recoveries:
One–to–four family residential real estate loans	5			6			81			407			16
Multi–family mortgage loans	10			9			137			5			169
Nonresidential real estate loans	39			161			—			460			24
Construction and land loans	—			—			35			—			38
Commercial loans	45			28			77			5			143
Commercial leases	7			—			—			—			—
Consumer loans	1			—			1			—			—
	107			204			331			877			390
Net (charge–offs) recoveries	(56		)	(1,816		)	215			648			227
Provision for (recovery of) loan losses	(525		)	1,315			(490		)	(1,038		)	(956		)
Ending balance	$	8,334		$	8,915		$	9,416		$	9,691		$	10,081

Allowance for loan losses to total loans	0.67		%	0.73		%	0.76		%	0.78		%	0.86		%
Net charge–off (recovery) ratio ⁽¹⁾	0.02			0.60			(0.07		)	(0.22		)	(0.08		)


(1)	Annualized

Page 6

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
DEPOSITS
Noninterest–bearing demand	$	234,652		$	231,928		$	238,848		$	254,830		$	233,192
Savings deposits	155,199			158,669			161,554			156,752			152,585
Money market accounts	320,814			315,615			323,197			329,654			327,080
Interest–bearing NOW accounts	263,286			258,083			247,434			248,982			245,780
Certificates of deposits - retail	223,642			223,948			221,101			211,010			210,588
Certificates of deposits - wholesale	119,102			80,359			72,555			11,691			12,309
	$	1,316,695		$	1,268,602		$	1,264,689		$	1,212,919		$	1,181,534

SELECTED AVERAGE BALANCES
Total average assets	$	1,511,475		$	1,510,115		$	1,513,683		$	1,448,857		$	1,434,749
Total average interest–earning assets	1,414,736			1,413,161			1,414,008			1,348,782			1,336,412
Average loans	1,225,480			1,210,726			1,238,270			1,175,723			1,164,251
Average securities	106,904			108,865			118,557			107,344			102,578
Average stock in FHLB	6,257			6,257			6,257			6,257			6,257
Average other interest–earning assets	76,095			87,313			50,924			59,458			63,326
Total average interest–bearing liabilities	1,052,916			1,037,781			1,037,730			971,000			990,733
Average interest–bearing deposits	1,050,935			1,034,674			962,823			951,631			981,633
Average borrowings	1,981			3,107			74,907			19,369			9,100
Average stockholders’ equity	206,237			209,231			212,322			213,858			213,061

SELECTED YIELDS AND COST OF FUNDS ^(1):
Total average interest–earning assets	3.61		%	3.58		%	3.63		%	3.65		%	3.61		%
Average loans	4.02			4.02			4.01			4.06			4.02
Average securities	1.14			1.13			1.07			1.07			1.03
Average other interest–earning assets	0.73			0.75			0.69			0.51			0.50
Total average interest–bearing liabilities	0.38			0.37			0.33			0.30			0.28
Average interest–bearing deposits	0.38			0.37			0.33			0.30			0.28
Average borrowings	0.40			0.26			0.37			0.25			0.17
Net interest rate spread	3.23			3.21			3.30			3.35			3.33
Net interest margin	3.33			3.31			3.39			3.43			3.40

(1) Annualized

Page 7

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
CAPITAL RATIOS
BankFinancial Corporation
Equity to total assets (end of period)	13.22		%	13.78		%	13.86		%	14.04		%	14.89		%
Tangible equity to tangible total assets (end of period)	13.17			13.72			13.79			13.97			14.80
Risk–based total capital ratio	17.64			18.09			17.80			17.89			19.10
Common Tier 1 (CET1)	16.87			17.26			16.95			17.01			18.14
Risk–based tier 1 capital ratio	16.87			17.26			16.95			17.01			18.14
Tier 1 leverage ratio	12.28			12.41			12.53			13.26			13.41
Tier 1 capital	$	183,092		$	184,695		$	186,964		$	189,044		$	189,216
BankFinancial FSB
Risk–based total capital ratio	15.21		%	15.09		%	15.83		%	15.41		%	16.22		%
Common Tier 1 (CET1)	14.44			14.26			14.98			14.54			15.25
Risk–based tier 1 capital ratio	14.44			14.26			14.98			14.54			15.25
Tier 1 leverage ratio	10.51			10.25			11.08			11.33			11.27
Tier 1 capital	$	156,725		$	152,559		$	165,183		$	161,545		$	159,118

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	12.70		$	11.99		$	11.82		$	12.63		$	12.43
High	12.80			12.89			13.29			13.22			12.48
Low	11.75			11.38			11.42			12.10			11.57
Common shares outstanding	19,271,211			19,678,697			19,939,500			20,297,317			20,501,966
Book value per share	$	10.57		$	10.50		$	10.51		$	10.46		$	10.39
Tangible book value per share	$	10.52		$	10.45		$	10.45		$	10.40		$	10.32
Cash dividends declared on common stock	$	0.05		$	0.05		$	0.05		$	0.04		$	0.08
Dividend payout ratio	38.82		%	119.60		%	53.50		%	38.59		%	69.82		%
Stock repurchases	$	5,022		$	3,280		$	4,393		$	2,582		$	—
Stock repurchases – shares	407,486			260,803			357,817			204,649			—

EARNINGS PER SHARE COMPUTATIONS
Net income	$	2,508		$	831		$	1,904		$	2,116		$	2,349
Average common shares outstanding	19,460,022			19,827,581			20,155,541			20,428,979			20,501,966
Less: Unearned ESOP shares	(670,351		)	(694,773		)	(719,109		)	(743,659		)	(768,327		)
Unvested restricted stock shares	(940		)	(2,690		)	(7,881		)	(7,932		)	(7,932		)
Weighted average common shares outstanding	18,788,731			19,130,118			19,428,551			19,677,388			19,725,707
Plus: Dilutive common shares equivalents	323			317			2,939			25,141			5,595
Weighted average dilutive common shares outstanding	18,789,054			19,130,435			19,431,490			19,702,529			19,731,302
Basic earnings per common share	$	0.13		$	0.04		$	0.10		$	0.11		$	0.12
Diluted earnings per common share	$	0.13		$	0.04		$	0.10		$	0.11		$	0.12
Number of anti–dilutive stock options excluded from the diluted earnings per share calculation	536,459			536,459			1,752,156			536,459			—
Weighted average exercise price of anti–dilutive options	$	12.99		$	12.99		$	12.30		$	12.99		$	—

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 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 core 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,
	2016			2015			2016			2015
Pre–tax pre–provision earnings from core operations
Income before income taxes	$	4,081		$	3,881		$	8,483		$	10,801
Provision for (recovery of) loan losses	(525		)	(956		)	300			(2,168		)
	3,556			2,925			8,783			8,633
Adjustments:
Equity-based compensation	107			297			875			332
Nonperforming asset management	89			244			300			442
Gain on sale of other real estate owned	(15		)	(11		)	(15		)	(91		)
Valuation adjustments of other real estate owned	115			231			244			467
Operations of other real estate owned	143			114			539			404
Adjustments	439			875			1,943			1,554
Pre–tax pre–provision earnings from core operations	$	3,995		$	3,800		$	10,726		$	10,187

Pre–tax pre–provision earnings from core operations to average total assets (1)	1.06		%	1.06		%	0.95		%	0.94		%


(1)	Annualized

Page 10

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE LATEST FIVE QUARTERS



	2016									2015
	IIIQ			IIQ			IQ			IVQ			IIIQ
Pre–tax pre–provision earnings from core operations
Income before income taxes	$	4,081		$	1,345		$	3,057		$	3,299		$	3,881
Provision for (recovery of) loan losses	(525		)	1,315			(490		)	(1,038		)	(956		)
	3,556			2,660			2,567			2,261			2,925
Adjustments:
Equity-based compensation	107			391			377			306			297
Nonperforming asset management	89			127			84			239			244
Loss (gain) on sale of other real estate owned	(15		)	(38		)	38			33			(11		)
Valuation adjustments of other real estate owned	115			10			119			81			231
Operations of other real estate owned	143			177			219			169			114
	439			667			837			828			875
Pre–tax pre–provision earnings from core operations	$	3,995		$	3,327		$	3,404		$	3,089		$	3,800

Pre–tax pre–provision earnings from core operations to average total assets (1)	1.06		%	0.88		%	0.90		%	0.85		%	1.06		%


(1)	Annualized

Page 11

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