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EX-99.1 - EXHIBIT 99.1 - BankFinancial CORPbfin201612resultspr.htm
8-K - BFIN 2016.12 RESULTS 8-K - BankFinancial CORPbfin201612results8-k.htm


Exhibit 99.2



BANKFINANCIAL CORPORATION
FOURTH 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
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
PERFORMANCE MEASUREMENTS
 
 
 
 
 
 
 
 
 
Return on assets (ratio of net income to average total assets) (1)
0.57
%
 
0.66
%
 
0.22
%
 
0.50
%
 
0.58
%
Return on equity (ratio of net income to average equity) (1)
4.41

 
4.86

 
1.59

 
3.59

 
3.96

Net interest rate spread (1)
3.01

 
3.23

 
3.21

 
3.30

 
3.35

Net interest margin (1)
3.11

 
3.33

 
3.31

 
3.39

 
3.43

Efficiency ratio
76.23

 
73.60

 
79.80

 
80.98

 
83.16

Noninterest expense to average total assets (1)
2.59

 
2.62

 
2.78

 
2.89

 
3.08

Average interest–earning assets to average interest–bearing liabilities
133.71

 
134.36

 
136.17

 
136.26

 
138.91

Number of full service offices
19

 
19

 
19

 
19

 
19

Employees (full time equivalents)
246

 
242

 
253

 
255

 
251

 
 
 
 
 
 
 
 
 
 
SUMMARY STATEMENT OF FINANCIAL CONDITION
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from other financial institutions
$
13,053

 
$
9,499

 
$
11,509

 
$
10,238

 
$
13,192

Interest-bearing deposits in other financial institutions
83,631

 
91,031

 
74,048

 
55,705

 
46,185

Securities, at fair value
107,212

 
99,899

 
105,698

 
111,386

 
114,753

Loans receivable, net
1,312,952

 
1,241,808

 
1,207,553

 
1,232,485

 
1,232,257

Other real estate owned, net
3,895

 
4,381

 
5,373

 
5,629

 
7,011

Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost
11,650

 
6,257

 
6,257

 
6,257

 
6,257

Premises and equipment, net
31,413

 
31,856

 
32,021

 
32,308

 
32,726

Intangible assets
782

 
911

 
1,040

 
1,169

 
1,305

Bank owned life insurance
22,594

 
22,538

 
22,484

 
22,438

 
22,387

Deferred taxes
22,411

 
23,715

 
25,187

 
25,641

 
26,695

Other assets
10,444

 
8,378

 
8,661

 
8,552

 
9,675

Total assets
$
1,620,037

 
$
1,540,273

 
$
1,499,831

 
$
1,511,808

 
$
1,512,443

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Deposits
$
1,339,390

 
$
1,316,695

 
$
1,268,602

 
$
1,264,689

 
$
1,212,919

Borrowings
51,069

 
1,406

 
1,469

 
17,621

 
64,318

Other liabilities
24,798

 
18,505

 
23,053

 
20,010

 
22,842

Total liabilities
1,415,257

 
1,336,606

 
1,293,124

 
1,302,320

 
1,300,079

Stockholders’ equity
204,780

 
203,667

 
206,707

 
209,488

 
212,364

Total liabilities and stockholders’ equity
$
1,620,037

 
$
1,540,273

 
$
1,499,831

 
$
1,511,808

 
$
1,512,443

(1)Annualized


Page 2

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


 
2016
 
2015
 
For the years ended December 31,
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
 
2016
 
2015
SUMMARY STATEMENT OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
 
Total interest income
$
12,743

 
$
12,845

 
$
12,581

 
$
12,759

 
$
12,411

 
$
50,928

 
$
48,962

Total interest expense
1,148

 
1,014

 
952

 
856

 
738

 
3,970

 
2,814

Net interest income before recovery
11,595

 
11,831

 
11,629

 
11,903

 
11,673

 
46,958

 
46,148

Recovery of loan losses
(539
)
 
(525
)
 
1,315

 
(490
)
 
(1,038
)
 
(239
)
 
(3,206
)
Net interest income
12,134

 
12,356

 
10,314

 
12,393

 
12,711

 
47,197

 
49,354

Noninterest income
1,777

 
1,637

 
1,537

 
1,594

 
1,757

 
6,545

 
6,691

Noninterest expense
10,194

 
9,912

 
10,506

 
10,930

 
11,169

 
41,542

 
41,945

Income before income tax
3,717

 
4,081

 
1,345

 
3,057

 
3,299

 
12,200

 
14,100

Income tax expense
1,458

 
1,573

 
514

 
1,153

 
1,183

 
4,698

 
5,425

Net income
$
2,259

 
$
2,508

 
$
831

 
$
1,904

 
$
2,116

 
$
7,502

 
$
8,675

Basic earnings per common share
$
0.12

 
$
0.13

 
$
0.04

 
$
0.10

 
$
0.11

 
$
0.40

 
$
0.44

Diluted earnings per common share
$
0.12

 
$
0.13

 
$
0.04

 
$
0.10

 
$
0.11

 
$
0.39

 
$
0.44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME AND EXPENSE
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest Income
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposit service charges and fees
$
563

 
$
583

 
$
541

 
$
567

 
$
603

 
$
2,254

 
$
2,248

Other fee income
574

 
478

 
505

 
495

 
505

 
2,052

 
2,143

Insurance commissions and annuities income
122

 
53

 
72

 
55

 
169

 
302

 
386

Gain on sales of loans, net
16

 
38

 
3

 
18

 
10

 
75

 
102

Gain on sale of securities

 

 

 
46

 

 
46

 

Gain (loss) on disposition of premises and equipment
38

 

 

 

 

 
38

 
(1
)
Loan servicing fees
62

 
66

 
75

 
73

 
83

 
276

 
354

Amortization of servicing assets
(32
)
 
(28
)
 
(40
)
 
(28
)
 
(32
)
 
(128
)
 
(137
)
Recovery (impairment) of servicing assets
16

 

 
3

 
(3
)
 
(1
)
 
16

 
(3
)
Earnings on bank owned life insurance
56

 
54

 
46

 
51

 
52

 
207

 
194

Trust income
182

 
167

 
165

 
160

 
183

 
674

 
712

Other
180

 
226

 
167

 
160

 
185

 
733

 
693

Total noninterest income
$
1,777

 
$
1,637

 
$
1,537

 
$
1,594

 
$
1,757

 
$
6,545

 
$
6,691

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest Expense
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation and benefits
$
5,734

 
$
5,315

 
$
5,713

 
$
5,993

 
$
6,034

 
$
22,755

 
$
22,222

Office occupancy and equipment
1,611

 
1,487

 
1,635

 
1,647

 
1,620

 
6,380

 
6,522

Advertising and public relations
252

 
144

 
252

 
222

 
208

 
870

 
991

Information technology
762

 
707

 
699

 
724

 
687

 
2,892

 
2,669

Supplies, telephone, and postage
346

 
345

 
297

 
376

 
397

 
1,364

 
1,586

Amortization of intangibles
129

 
129

 
129

 
136

 
136

 
523

 
550

Nonperforming asset management
99

 
89

 
127

 
84

 
239

 
399

 
681

Loss (gain) on sales of other real estate owned
(113
)
 
(15
)
 
(38
)
 
38

 
33

 
(128
)
 
(58
)
Valuation adjustments of other real estate owned
70

 
115

 
10

 
119

 
81

 
314

 
548

Operations of other real estate owned
121

 
143

 
177

 
219

 
169

 
660

 
573

FDIC insurance premiums
64

 
238

 
236

 
217

 
205

 
755

 
904

Other
1,119

 
1,215

 
1,269

 
1,155

 
1,360

 
4,758

 
4,757

Total noninterest expense
$
10,194

 
$
9,912

 
$
10,506

 
$
10,930

 
$
11,169

 
$
41,542

 
$
41,945


Page 3

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


 
2016
 
2015
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
135,218

 
$
142,130

 
$
147,876

 
$
154,588

 
$
159,501

Multi–family mortgage loans
542,887

 
505,369

 
504,158

 
513,450

 
506,026

Nonresidential real estate loans
182,152

 
186,504

 
191,685

 
219,339

 
226,735

Construction and land loans
1,302

 
1,005

 
1,767

 
1,799

 
1,313

Commercial loans
103,063

 
106,878

 
84,951

 
76,325

 
79,516

Commercial leases
352,539

 
304,753

 
282,629

 
272,849

 
265,405

Consumer loans
2,255

 
1,846

 
1,744

 
1,890

 
1,831

 
1,319,416

 
1,248,485

 
1,214,810

 
1,240,240

 
1,240,327

Net deferred loan origination costs
1,663

 
1,657

 
1,658

 
1,661

 
1,621

Allowance for loan losses
(8,127
)
 
(8,334
)
 
(8,915
)
 
(9,416
)
 
(9,691
)
Loans, net
$
1,312,952

 
$
1,241,808

 
$
1,207,553

 
$
1,232,485

 
$
1,232,257

 
 
 
 
 
 
 
 
 
 
LOAN ORIGINATIONS (1)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
1,426

 
$
2,322

 
$
2,279

 
$
1,637

 
$
2,657

Multi–family mortgage loans
54,954

 
25,062

 
18,017

 
24,385

 
43,110

Nonresidential real estate loans
9,033

 
3,518

 
3,587

 
5,002

 
20,408

Construction and land loans
359

 
92

 

 
198

 

Commercial loans
49,385

 
67,919

 
54,149

 
35,771

 
44,293

Commercial leases (3)
87,855

 
54,717

 
54,633

 
39,303

 
71,201

Consumer loans
611

 
883

 
1,025

 
588

 
725

 
$
203,623

 
$
154,513

 
$
133,690

 
$
106,884

 
$
182,394

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (2)
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
8,698

 
$
7,245

 
$
8,500

 
$
6,413

 
$
7,471

Multi–family mortgage loans
16,999

 
24,276

 
27,188

 
17,082

 
13,559

Nonresidential real estate loans
12,697

 
8,740

 
30,024

 
11,878

 
12,748

Construction and land loans
24

 
852

 
33

 
57

 
41

Commercial loans
53,147

 
45,990

 
45,528

 
39,030

 
45,460

Commercial leases
35,984

 
31,437

 
48,774

 
31,552

 
26,353

Consumer loans
633

 
801

 
1,080

 
664

 
701

 
$
128,182

 
$
119,341

 
$
161,127

 
$
106,676

 
$
106,333

 
 
 
 
 
 
 
 
 
 
LOAN PAYMENTS and PAYOFFS (Loans rated 5 or higher) (2)
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
350

 
$
220

 
$
778

 
$
441

 
$
363

Multi–family mortgage loans
1,131

 
1,155

 
4,163

 
5,117

 
2,199

Nonresidential real estate loans
1,690

 
500

 
19,164

 
409

 
784

Construction and land loans

 
828

 

 
24

 
8

Commercial loans
5,681

 
6,037

 
12,243

 
7,861

 
4,873

Commercial leases
177

 
203

 
197

 
194

 

 
$
9,029

 
$
8,943

 
$
36,545

 
$
14,046

 
$
8,227


(1) Loan originations include draws on revolving lines of credit and exclude loan renewals.
(2) Loan payments and payoffs exclude loan renewals.
(3) Fourth quarter 2016 originations include $55.0 million purchased investment grade commercial leases.

Page 4

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


 
2016
 
2015
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
CREDIT QUALITY:
 
 
 
 
 
 
 
 
 
Nonperforming Assets:
 
 
 
 
 
 
 
 
 
Nonaccrual loans (1):
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
2,851

 
$
2,691

 
$
2,625

 
$
3,370

 
$
2,455

Multi–family mortgage loans
185

 
508

 
1,021

 
953

 
821

Nonresidential real estate loans
260

 
717

 
754

 
295

 
296

Construction and land loans

 

 

 
803

 

Nonaccrual loans
3,296

 
3,916

 
4,400

 
5,421

 
3,572

 
 
 
 
 
 
 
 
 
 
Loans past due over 90 days, still accruing

 

 
828

 

 

 
 
 
 
 
 
 
 
 
 
Other real estate owned:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
1,565

 
2,281

 
2,433

 
2,619

 
2,621

Multi–family real estate
370

 
393

 
737

 
737

 
951

Nonresidential real estate
1,066

 
780

 
1,065

 
1,135

 
1,747

Land 
894

 
927

 
1,138

 
1,138

 
1,692

Other real estate owned
3,895

 
4,381

 
5,373

 
5,629

 
7,011

 
 
 
 
 
 
 
 
 
 
Nonperforming assets
$
7,191

 
$
8,297

 
$
10,601

 
$
11,050

 
$
10,583

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
0.44
%
 
0.54
%
 
0.71
%
 
0.73
%
 
0.70
%
Nonperforming loans to total loans
0.25

 
0.31

 
0.43

 
0.44

 
0.29

Nonperforming commercial-related loans to total commercial-related loans (2)
0.04

 
0.11

 
0.24

 
0.19

 
0.10

Nonperforming residential and consumer loans to total residential and consumer loans
2.08

 
1.87

 
1.75

 
2.15

 
1.52

Allowance for loan losses to nonperforming loans
246.57

 
212.82

 
170.52

 
173.69

 
271.30

 
 
 
 
 
 
 
 
 
 
Concentrations of Credit
 
 
 
 
 
 
 
 
 
Commercial Real Estate for FFEIC Concentration Limits
$
690,879

 
$
658,887

 
$
662,493

 
$
685,732

 
$
682,012

% FFIEC Total Capital
410.96
%
 
399.18
%
 
410.28
%
 
392.73
%
 
398.28
%
 
 
 
 
 
 
 
 
 
 
Multi–family mortgage loans - 50% risk based capital qualified (included above)
$
305,436

 
$
269,641

 
$
246,117

 
$
238,922

 
$
233,409

% FFIEC Total Capital
181.68
%
 
163.36
%
 
152.42
%
 
136.84
%
 
136.31
%
 
 
 
 
 
 
 
 
 
 
Commercial Leases - Investment Grade
$
268,022

 
$
215,237

 
$
199,020

 
$
182,057

 
$
170,100

Commercial Leases - Other
84,517

 
89,516

 
83,609

 
90,792

 
95,305

(1)
Purchased impaired loans are combined with nonaccrual loans in the above table.
(2)
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)


 
2016
 
2015
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
SUBSTANDARD PERFORMING LOANS
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
$
670

 
$
475

 
$
335

 
$
440

 
$
847

Multi–family mortgage loans
1,048

 
2,119

 
2,025

 
3,347

 
5,167

Nonresidential real estate loans
1,845

 
2,407

 
3,194

 
4,981

 
4,981

Construction and land loans

 

 
830

 

 
842

Commercial loans
66

 
75

 
225

 
137

 
614

Consumer loans

 

 
2

 

 

 
$
3,629

 
$
5,076

 
$
6,611

 
$
8,905

 
$
12,451

 
 
 
 
 
 
 
 
 
 
PERFORMING LOANS GREATER THAN 30 DAYS PAST DUE
 
 
 
 
 
 
30 – 59 days past due
$
2,237

 
$
685

 
$
171

 
$
3,012

 
$
2,036

60 – 89 days past due
617

 
419

 
71

 
30

 
926

Matured Loans
270

 
784

 
277

 
1,387

 
1,467

 
$
3,124

 
$
1,888

 
$
519

 
$
4,429

 
$
4,429

 
 
 
 
 
 
 
 
 
 
ALLOWANCE FOR LOAN LOSSES
 
 
 
 
 
 
 
 
 
Beginning balance
$
8,334

 
$
8,915

 
$
9,416

 
$
9,691

 
$
10,081

Charge offs:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
(30
)
 
(102
)
 
(355
)
 
(52
)
 
(59
)
Multi–family mortgage loans
(28
)
 

 
(6
)
 
(45
)
 
(9
)
Nonresidential real estate loans
(3
)
 
(55
)
 
(1,657
)
 
(3
)
 
(102
)
Commercial loans

 

 

 

 
(54
)
Consumer loans
(1
)
 
(6
)
 
(2
)
 
(16
)
 
(5
)
 
(62
)
 
(163
)
 
(2,020
)
 
(116
)
 
(229
)
Recoveries:
 
 
 
 
 
 
 
 
 
One–to–four family residential real estate loans
229

 
5

 
6

 
81

 
407

Multi–family mortgage loans
6

 
10

 
9

 
137

 
5

Nonresidential real estate loans

 
39

 
161

 

 
460

Construction and land loans

 

 

 
35

 

Commercial loans
159

 
45

 
28

 
77

 
5

Commercial leases

 
7

 

 

 

Consumer loans

 
1

 

 
1

 

 
394

 
107

 
204

 
331

 
877

Net (charge–offs) recoveries
332

 
(56
)
 
(1,816
)
 
215

 
648

Provision for (recovery of ) loan losses
(539
)
 
(525
)
 
1,315

 
(490
)
 
(1,038
)
Ending balance
$
8,127

 
$
8,334

 
$
8,915

 
$
9,416

 
$
9,691

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses to total loans
0.62
%
 
0.67
 %
 
0.73
 %
 
0.76
%
 
0.78
%
Net (charge–off) recovery ratio (1)
0.11

 
(0.02
)
 
(0.60
)
 
0.07

 
0.22

(1)
Annualized


Page 6

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


 
2016
 
2015
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
DEPOSITS
 
 
 
 
 
 
 
 
 
Noninterest–bearing demand
$
249,539

 
$
234,652

 
$
231,928

 
$
238,848

 
$
254,830

Savings deposits
160,002

 
155,199

 
158,669

 
161,554

 
156,752

Money market accounts
311,183

 
320,814

 
315,615

 
323,197

 
329,654

Interest–bearing NOW accounts
267,054

 
263,286

 
258,083

 
247,434

 
248,982

Certificates of deposits - retail
220,602

 
223,642

 
223,948

 
221,101

 
211,010

Certificates of deposits - wholesale
131,010

 
119,102

 
80,359

 
72,555

 
11,691

 
$
1,339,390

 
$
1,316,695

 
$
1,268,602

 
$
1,264,689

 
$
1,212,919

 
 
 
 
 
 
 
 
 
 
SELECTED AVERAGE BALANCES
 
 
 
 
 
 
 
 
 
Total average assets
$
1,576,345

 
$
1,511,475

 
$
1,510,115

 
$
1,513,683

 
$
1,448,857

Total average interest–earning assets
1,481,775

 
1,414,736

 
1,413,161

 
1,414,008

 
1,348,782

Average loans
1,253,224

 
1,225,480

 
1,210,726

 
1,238,270

 
1,175,723

Average securities
99,767

 
106,904

 
108,865

 
118,557

 
107,344

Average stock in FHLB & FRB
8,133

 
6,257

 
6,257

 
6,257

 
6,257

Average other interest–earning assets
120,651

 
76,095

 
87,313

 
50,924

 
59,458

Total average interest–bearing liabilities
1,108,181

 
1,052,916

 
1,037,781

 
1,037,730

 
971,000

Average interest–bearing deposits
1,088,265

 
1,050,935

 
1,034,674

 
962,823

 
951,631

Average borrowings
19,916

 
1,981

 
3,107

 
74,907

 
19,369

Average stockholders’ equity
205,071

 
206,237

 
209,231

 
212,322

 
213,858

 
 
 
 
 
 
 
 
 
 
SELECTED YIELDS AND COST OF FUNDS (1):
 
 
 
 
 
 
 
 
Total average interest–earning assets
3.42
%
 
3.61
%
 
3.58
%
 
3.63
%
 
3.65
%
Average loans
3.87

 
4.02

 
4.02

 
4.01

 
4.06

Average securities
1.20

 
1.14

 
1.13

 
1.07

 
1.07

Average other interest–earning assets
0.78

 
0.73

 
0.75

 
0.69

 
0.51

Total average interest–bearing liabilities
0.41

 
0.38

 
0.37

 
0.33

 
0.30

Average interest–bearing deposits
0.41

 
0.38

 
0.37

 
0.33

 
0.30

Average borrowings
0.64

 
0.40

 
0.26

 
0.37

 
0.25

Net interest rate spread
3.01

 
3.23

 
3.21

 
3.30

 
3.35

Net interest margin
3.11

 
3.33

 
3.31

 
3.39

 
3.43

(1)     Annualized

Page 7

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


 
2016
 
2015
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
BankFinancial Corporation
 
 
 
 
 
 
 
 
 
Equity to total assets (end of period)
12.64
%
 
13.22
%
 
13.78
%
 
13.86
%
 
14.04
%
Tangible equity to tangible total assets (end of period)
12.60

 
13.17

 
13.72

 
13.79

 
13.97

Risk–based total capital ratio
16.96

 
17.64

 
18.09

 
17.80

 
17.89

Common Tier 1 (CET1)
16.25

 
16.87

 
17.26

 
16.95

 
17.01

Risk–based tier 1 capital ratio
16.25

 
16.87

 
17.26

 
16.95

 
17.01

Tier 1 leverage ratio
11.92

 
12.28

 
12.41

 
12.53

 
13.26

Tier 1 capital
$
185,718

 
$
183,092

 
$
184,695

 
$
186,964

 
$
189,044

BankFinancial, NA
 
 
 
 
 
 
 
 
 
Risk–based total capital ratio
14.72
%
 
15.21
%
 
15.09
%
 
15.83
%
 
15.41
%
Common Tier 1 (CET1)
14.01

 
14.44

 
14.26

 
14.98

 
14.54

Risk–based tier 1 capital ratio
14.01

 
14.44

 
14.26

 
14.98

 
14.54

Tier 1 leverage ratio
10.27

 
10.51

 
10.25

 
11.08

 
11.33

Tier 1 capital
$
159,986

 
$
156,725

 
$
152,559

 
$
165,183

 
$
161,545

 
 
 
 
 
 
 
 
 
 
COMMON STOCK AND DIVIDENDS
 
 
 
 
 
 
 
 
 
Stock Prices:
 
 
 
 
 
 
 
 
 
Close
$
14.82

 
$
12.70

 
$
11.99

 
$
11.82

 
$
12.63

High
15.12

 
12.80

 
12.89

 
13.29

 
13.22

Low
12.15

 
11.75

 
11.38

 
11.42

 
12.10

Common shares outstanding
19,233,760

 
19,271,211

 
19,678,697

 
19,939,500

 
20,297,317

Book value per share
$
10.65

 
$
10.57

 
$
10.50

 
$
10.51

 
$
10.46

Tangible book value per share
$
10.61

 
$
10.52

 
$
10.45

 
$
10.45

 
$
10.40

Cash dividends declared on common stock
$
0.06

 
$
0.05

 
$
0.05

 
$
0.05

 
$
0.04

Dividend payout ratio
51.09
%
 
38.82
%
 
119.60
%
 
53.50
%
 
38.59
%
Stock repurchases
$
520

 
$
5,022

 
$
3,280

 
$
4,393

 
$
2,582

Stock repurchases – shares
37,451

 
407,486

 
260,803

 
357,817

 
204,649

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE COMPUTATIONS
 
 
 
 
 
 
 
 
 
Net income
$
2,259

 
$
2,508

 
$
831

 
$
1,904

 
$
2,116

Average common shares outstanding
19,257,435

 
19,460,022

 
19,827,581

 
20,155,541

 
20,428,979

Less: Unearned ESOP shares
(645,751
)
 
(670,351
)
 
(694,773
)
 
(719,109
)
 
(743,659
)
Unvested restricted stock shares
(940
)
 
(940
)
 
(2,690
)
 
(7,881
)
 
(7,932
)
Weighted average common shares outstanding
18,610,744


18,788,731

 
19,130,118

 
19,428,551

 
19,677,388

Plus: Dilutive common shares equivalents
170,683

 
323

 
317

 
2,939

 
25,141

Weighted average dilutive common shares outstanding
18,781,427

 
18,789,054

 
19,130,435

 
19,431,490

 
19,702,529

Basic earnings per common share
$
0.12

 
$
0.13

 
$
0.04

 
$
0.10

 
$
0.11

Diluted earnings per common share
$
0.12

 
$
0.13

 
$
0.04

 
$
0.10

 
$
0.11

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 adjusted operations and pre–tax pre–provision earnings from adjusted operations to average total assets. Management believes that by excluding equity-based compensation expense, other real estate owned related income and expense items and nonperforming asset management expenses from noninterest expense, these measures better reflect our adjusted operating performance.

Page 9

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

 
 
 
 
 
 
 
 
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2016
 
2015
 
2016
 
2015
Pre–tax pre–provision earnings from adjusted operations
 
 
 
 
 
 
Income before income taxes
$
3,717

 
$
3,299

 
$
12,200

 
$
14,100

Recovery of loan losses
(539
)
 
(1,038
)
 
(239
)
 
(3,206
)
 
3,178

 
2,261

 
11,961

 
10,894

Adjustments:
 
 
 
 
 
 
 
Equity-based compensation
107

 
306

 
982

 
638

Nonperforming asset management
99

 
239

 
399

 
681

Loss (gain) on sale of other real estate owned
(113
)
 
33

 
(128
)
 
(58
)
Valuation adjustments of other real estate owned
70

 
81

 
314

 
548

Operations of other real estate owned
121

 
169

 
660

 
573

Adjustments
284

 
828

 
2,227

 
2,382

Pre–tax pre–provision earnings from adjusted operations
$
3,462

 
$
3,089

 
$
14,188

 
$
13,276

 
 
 
 
 
 
 
 
Pre–tax pre–provision earnings from adjusted operations to average total assets (1)
0.88
%
 
0.85
%
 
0.93
%
 
0.92
%

(1)
Annualized

Page 10

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

FOR THE LATEST FIVE QUARTERS
 
2016
 
2015
 
IVQ
 
IIIQ
 
IIQ
 
IQ
 
IVQ
Pre–tax pre–provision earnings from adjusted operations
 
 
 
 
 
 
 
 
Income before income taxes
$
3,717

 
$
4,081

 
$
1,345

 
$
3,057

 
$
3,299

Recovery of loan losses
(539
)
 
(525
)
 
1,315

 
(490
)
 
(1,038
)
 
3,178

 
3,556

 
2,660

 
2,567

 
2,261

Adjustments:
 
 
 
 
 
 
 
 
 
Equity-based compensation
107

 
107

 
391

 
377

 
306

Nonperforming asset management
99

 
89

 
127

 
84

 
239

Loss (gain) on sale of other real estate owned
(113
)
 
(15
)
 
(38
)
 
38

 
33

Valuation adjustments of other real estate owned
70

 
115

 
10

 
119

 
81

Operations of other real estate owned
121

 
143

 
177

 
219

 
169

 
284

 
439

 
667

 
837

 
828

Pre–tax pre–provision earnings from adjusted operations
$
3,462

 
$
3,995

 
$
3,327

 
$
3,404

 
$
3,089

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

(1)
Annualized


Page 11