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

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - BankFinancial CORP	bfin201709ex991earningspr.htm
8-K - 8-K - BankFinancial CORP	bfin2017098kresults.htm

Exhibit 99.2

BANKFINANCIAL CORPORATION

THIRD QUARTER 2017

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)



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾	0.88		%	0.64		%	0.47		%	0.57		%	0.66		%
Return on equity (ratio of net income to average equity)⁽¹⁾	7.07			5.08			3.66			4.41			4.86
Net interest rate spread ⁽¹⁾	3.10			3.10			3.15			3.01			3.23
Net interest margin ⁽¹⁾	3.23			3.22			3.26			3.11			3.33
Efficiency ratio	72.19			69.62			82.66			76.23			73.60
Noninterest expense to average total assets⁽¹⁾	2.51			2.38			2.82			2.59			2.62
Average interest–earning assets to average interest–bearing liabilities	131.23			131.33			132.57			133.71			134.36
Number of full service offices	19			19			19			19			19
Employees (full time equivalents)	238			247			242			246			242

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	10,620		$	9,835		$	10,247		$	13,053		$	9,499
Interest-bearing deposits in other financial institutions	115,041			71,771			65,219			83,631			91,031
Securities, at fair value	98,787			109,762			110,230			107,212			99,899
Loans receivable, net	1,335,631			1,335,835			1,319,287			1,312,952			1,241,808
Other real estate owned, net	3,569			4,896			5,301			3,895			4,381
Stock in Federal Home Loan Bank and Federal Reserve Bank, at cost	8,290			8,290			8,147			11,650			6,257
Premises and equipment, net	30,774			30,889			31,149			31,413			31,856
Intangible assets	408			531			653			782			911
Bank owned life insurance	22,790			22,723			22,657			22,594			22,538
Deferred taxes	20,214			20,676			22,103			22,411			23,715
Other assets	8,145			8,210			8,480			10,444			8,378
Total assets	$	1,654,269		$	1,623,418		$	1,603,473		$	1,620,037		$	1,540,273

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,371,089		$	1,347,887		$	1,329,282		$	1,339,390		$	1,316,695
Borrowings	60,928			50,877			52,046			51,069			1,406
Other liabilities	22,474			24,592			20,124			24,798			18,505
Total liabilities	1,454,491			1,423,356			1,401,452			1,415,257			1,336,606
Stockholders’ equity	199,778			200,062			202,021			204,780			203,667
Total liabilities and stockholders’ equity	$	1,654,269		$	1,623,418		$	1,603,473		$	1,620,037		$	1,540,273

(1)Annualized

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	14,121		$	13,649		$	13,362		$	12,743		$	12,845
Total interest expense	1,615			1,456			1,276			1,148			1,014
Net interest income before provision (recovery)	12,506			12,193			12,086			11,595			11,831
Provision for (recovery of) loan losses	(225		)	49			161			(539		)	(525		)
Net interest income	12,731			12,144			11,925			12,134			12,356
Noninterest income	1,623			1,607			1,544			1,777			1,637
Noninterest expense	10,200			9,607			11,266			10,194			9,912
Income before income tax	4,154			4,144			2,203			3,717			4,081
Income tax expense	594			1,572			322			1,458			1,573
Net income	$	3,560		$	2,572		$	1,881		$	2,259		$	2,508
Basic earnings per common share	$	0.20		$	0.14		$	0.10		$	0.12		$	0.13
Diluted earnings per common share	$	0.20		$	0.14		$	0.10		$	0.12		$	0.13

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	584		$	569		$	529		$	563		$	583
Other fee income	523			490			481			574			478
Insurance commissions and annuities income	41			52			77			122			53
Gain on sales of loans, net	10			53			7			16			38
Gain on other assets	—			—			—			38			—
Loan servicing fees	58			62			68			62			66
Amortization of servicing assets	(27		)	(28		)	(31		)	(32		)	(28		)
Recovery of servicing assets	—			—			—			16			—
Earnings on bank owned life insurance	67			66			63			56			54
Trust income	169			193			172			182			167
Other	198			150			178			180			226
Total noninterest income	$	1,623		$	1,607		$	1,544		$	1,777		$	1,637

Noninterest Expense
Compensation and benefits	$	5,330		$	5,110		$	6,352		$	5,734		$	5,315
Office occupancy and equipment	1,693			1,599			1,622			1,611			1,487
Advertising and public relations	167			259			381			252			144
Information technology	638			679			753			762			707
Supplies, telephone, and postage	337			358			332			346			345
Amortization of intangibles	123			122			129			129			129
Nonperforming asset management	84			27			104			99			89
Loss (gain) on sales of other real estate owned	69			15			16			(113		)	(15		)
Valuation adjustments of other real estate owned	227			54			20			70			115
Operations of other real estate owned	107			176			177			121			143
FDIC insurance premiums	150			125			187			64			238
Other	1,275			1,083			1,193			1,119			1,215
Total noninterest expense	$	10,200		$	9,607		$	11,266		$	10,194		$	9,912

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
LOANS
One–to–four family residential real estate loans	$	105,186		$	115,659		$	122,310		$	135,218		$	142,130
Multi–family mortgage loans	576,425			555,691			549,829			542,887			505,369
Nonresidential real estate loans	176,301			177,436			179,896			182,152			186,504
Construction and land loans	2,827			2,265			1,354			1,302			1,005
Commercial loans	147,079			129,200			105,671			103,063			106,878
Commercial leases	333,120			360,397			364,768			352,539			304,753
Consumer loans	1,747			1,829			1,896			2,255			1,846
	1,342,685			1,342,477			1,325,724			1,319,416			1,248,485
Net deferred loan origination costs	1,320			1,480			1,534			1,663			1,657
Allowance for loan losses	(8,374		)	(8,122		)	(7,971		)	(8,127		)	(8,334		)
Loans, net	$	1,335,631		$	1,335,835		$	1,319,287		$	1,312,952		$	1,241,808

LOAN ORIGINATIONS ⁽¹⁾
One–to–four family residential real estate loans	$	1,654		$	1,708		$	1,141		$	1,426		$	2,322
Multi–family mortgage loans	40,695			22,938			25,613			54,954			25,062
Nonresidential real estate loans	2,462			1,577			8,376			9,033			3,518
Construction and land loans	646			936			76			359			92
Commercial loans	90,617			104,571			48,899			49,385			67,919
Commercial leases	27,199			46,821			61,550			87,855			54,717
Consumer loans	1,002			591			636			611			883
	$	164,275		$	179,142		$	146,291		$	203,623		$	154,513
Weighted average rate	4.77		%	4.96		%	4.18		%	3.79		%	4.07		%

LOAN PAYMENTS and PAYOFFS⁽²⁾
One–to–four family residential real estate loans	$	11,931		$	7,528		$	13,007		$	8,698		$	7,245
Multi–family mortgage loans	19,966			16,351			18,464			16,999			24,276
Nonresidential real estate loans	3,658			3,954			9,834			12,697			8,740
Construction and land loans	67			25			24			24			852
Commercial loans	71,481			79,141			46,291			53,147			45,990
Commercial leases	57,061			49,970			47,695			35,984			31,437
Consumer loans	1,159			611			600			633			801
	$	165,323		$	157,580		$	135,915		$	128,182		$	119,341
Weighted average rate	4.30		%	4.39		%	4.09		%	4.31		%	4.18		%


(1)	Loan originations include purchased loans, draws on revolving lines of credit and exclude loan renewals.


(2)	Loan payments and payoffs exclude loan renewals.

Page 4

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate loans	$	2,234		$	2,585		$	2,296		$	2,851		$	2,691
Multi–family mortgage loans	371			371			106			185			508
Nonresidential real estate loans	—			—			—			260			717
Nonaccrual loans	2,605			2,956			2,402			3,296			3,916

Other real estate owned:
One–to–four family residential real estate loans	1,748			1,946			1,986			1,565			2,281
Multi–family real estate	—			357			615			370			393
Nonresidential real estate	1,551			1,736			1,808			1,066			780
Land	270			857			892			894			927
Other real estate owned	3,569			4,896			5,301			3,895			4,381

Nonperforming assets	$	6,174		$	7,852		$	7,703		$	7,191		$	8,297

Asset Quality Ratios
Nonperforming assets to total assets	0.37		%	0.48		%	0.48		%	0.44		%	0.54		%
Nonperforming loans to total loans	0.19			0.22			0.18			0.25			0.31
Nonperforming commercial-related loans to total commercial-related loans ⁽¹⁾	0.03			0.03			0.01			0.04			0.11
Nonperforming residential and consumer loans to total residential and consumer loans	2.95			2.20			1.85			2.08			1.87
Allowance for loan losses to nonperforming loans	321.46			274.76			331.85			246.57			212.82

Concentrations of Credit
Commercial Real Estate for FFIEC Concentration Limits	$	723,797		$	702,476		$	696,933		$	690,879		$	658,887
% FFIEC Total Capital	392.91		%	386.32		%	386.37		%	410.96		%	399.18		%

Multi–family mortgage loans - 50% risk based capital qualified (included above)	$	330,181		$	309,867		$	308,653		$	305,436		$	269,641
% FFIEC Total Capital	179.24		%	170.41		%	171.11		%	181.68		%	163.36		%

Commercial Leases - Investment Grade	$	230,931		$	255,375		$	279,345		$	268,022		$	215,237
Commercial Leases - Other	102,189			105,022			85,423			84,517			89,516


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

Page 5

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate loans	$	297		$	364		$	726		$	670		$	475
Multi–family mortgage loans	480			487			769			1,048			2,119
Nonresidential real estate loans	162			106			108			1,845			2,407
Commercial loans	982			1,007			14			66			75
Consumer loans	—			6			—			—			—
	$	1,921		$	1,970		$	1,617		$	3,629		$	5,076

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	8,122		$	7,971		$	8,127		$	8,334		$	8,915
Charge offs:
One–to–four family residential real estate loans	(89		)	(22		)	(171		)	(30		)	(102		)
Multi–family mortgage loans	(7		)	—			(3		)	(28		)	—
Nonresidential real estate loans	—			—			(165		)	(3		)	(55		)
Consumer loans	(7		)	—			—			(1		)	(6		)
	(103		)	(22		)	(339		)	(62		)	(163		)
Recoveries:
One–to–four family residential real estate loans	15			79			6			229			5
Multi–family mortgage loans	11			40			11			6			10
Nonresidential real estate loans	10			—			—			—			39
Commercial loans	542			5			5			159			45
Commercial leases	2			—			—			—			7
Consumer loans	—			—			—			—			1
	580			124			22			394			107
Net (charge–offs) recoveries	477			102			(317		)	332			(56		)
Provision for (recovery of ) loan losses	(225		)	49			161			(539		)	(525		)
Ending balance	$	8,374		$	8,122		$	7,971		$	8,127		$	8,334

Allowance for loan losses to total loans	0.62		%	0.61		%	0.60		%	0.62		%	0.67		%
Net (charge–off) recovery ratio ⁽¹⁾	0.14			0.03			(0.10		)	0.11			(0.02		)


(1)	Annualized

Page 6

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
DEPOSITS
Noninterest–bearing demand	$	231,049		$	229,921		$	234,415		$	249,539		$	234,652
Savings deposits	158,696			160,544			161,938			160,002			155,199
Money market accounts	301,905			305,300			304,981			311,183			320,814
Interest–bearing NOW accounts	283,411			286,400			266,157			267,054			263,286
Certificates of deposits - retail	219,478			222,744			219,068			220,602			223,642
Certificates of deposits - wholesale	176,550			142,978			142,723			131,010			119,102
	$	1,371,089		$	1,347,887		$	1,329,282		$	1,339,390		$	1,316,695

SELECTED AVERAGE BALANCES
Total average assets	$	1,624,437		$	1,612,121		$	1,595,191		$	1,576,345		$	1,511,475
Total average interest–earning assets	1,535,843			1,519,573			1,502,146			1,481,775			1,414,736
Average loans	1,331,302			1,318,473			1,313,299			1,253,224			1,225,480
Average securities	108,050			109,454			113,756			99,767			106,904
Average stock in FHLB & FRB	8,290			8,250			9,158			8,133			6,257
Average other interest–earning assets	88,201			83,396			65,933			120,651			76,095
Total average interest–bearing liabilities	1,170,322			1,157,060			1,133,098			1,108,181			1,052,916
Average interest–bearing deposits	1,112,210			1,105,881			1,083,792			1,088,265			1,050,935
Average borrowings	58,112			51,179			49,306			19,916			1,981
Average stockholders’ equity	201,420			202,360			205,379			205,071			206,237

SELECTED YIELDS AND COST OF FUNDS ^(1):
Total average interest–earning assets	3.65		%	3.60		%	3.61		%	3.42		%	3.61		%
Average loans	3.98			3.94			3.94			3.87			4.02
Average securities	1.43			1.31			1.24			1.20			1.14
Average other interest–earning assets	1.29			1.13			0.95			0.78			0.73
Total average interest–bearing liabilities	0.55			0.50			0.46			0.41			0.38
Average interest–bearing deposits	0.51			0.47			0.44			0.41			0.38
Average borrowings	1.34			1.19			0.79			0.64			0.40
Net interest rate spread	3.10			3.10			3.15			3.01			3.23
Net interest margin	3.23			3.22			3.26			3.11			3.33

(1) Annualized

Page 7

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
CAPITAL RATIOS
BankFinancial Corporation
Equity to total assets (end of period)	12.08		%	12.32		%	12.60		%	12.64		%	13.22		%
Tangible equity to tangible total assets (end of period)	12.05			12.29			12.56			12.60			13.17
Risk–based total capital ratio	16.43			16.29			16.65			16.96			17.64
Common Tier 1 (CET1)	15.71			15.59			15.96			16.25			16.87
Risk–based tier 1 capital ratio	15.71			15.59			15.96			16.25			16.87
Tier 1 leverage ratio	11.36			11.42			11.58			11.92			12.28
Tier 1 capital	$	182,683		$	182,088		$	182,508		$	185,718		$	183,092
BankFinancial, NA
Risk–based total capital ratio	15.85		%	15.57		%	15.76		%	14.72		%	15.21		%
Common Tier 1 (CET1)	15.13			14.88			15.06			14.01			14.44
Risk–based tier 1 capital ratio	15.13			14.88			15.06			14.01			14.44
Tier 1 leverage ratio	10.94			10.89			10.94			10.27			10.51
Tier 1 capital	$	175,838		$	173,717		$	172,410		$	159,986		$	156,725

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	15.89		$	14.92		$	14.52		$	14.82		$	12.70
High	16.89			15.31			15.24			15.12			12.80
Low	14.66			13.43			13.13			12.15			11.75
Common shares outstanding	18,063,623			18,229,860			18,440,440			19,233,760			19,271,211
Book value per share	$	11.06		$	10.97		$	10.96		$	10.65		$	10.57
Tangible book value per share	$	11.04		$	10.95		$	10.92		$	10.61		$	10.52
Cash dividends declared on common stock	$	0.07		$	0.07		$	0.06		$	0.06		$	0.05
Dividend payout ratio	35.69		%	49.94		%	61.42		%	51.09		%	38.82		%
Stock repurchases	$	2,581		$	3,188		$	3,379		$	520		$	5,022
Stock repurchases – shares	166,237			216,391			232.045			37,451			407,486

EARNINGS PER SHARE COMPUTATIONS
Net income	$	3,560		$	2,572		$	1,881		$	2,259		$	2,508
Average common shares outstanding	18,140,599			18,330,972			19,243,941			19,257,435			19,460,022
Less: Unearned ESOP shares	—			—			(600,947		)	(645,751		)	(670,351		)
Unvested restricted stock shares	(940		)	(940		)	(940		)	(940		)	(940		)
Weighted average common shares outstanding	18,139,659			18,330,032			18,642,054			18,610,744			18,788,731
Plus: Dilutive common shares equivalents	450			423			5,462			170,683			323
Weighted average dilutive common shares outstanding	18,140,109			18,330,455			18,647,516			18,781,427			18,789,054
Basic earnings per common share	$	0.20		$	0.14		$	0.10		$	0.12		$	0.13
Diluted earnings per common share	$	0.20		$	0.14		$	0.10		$	0.12		$	0.13
Number of anti–dilutive stock options excluded from the diluted earnings per share calculation	—			—			—			—			536,459
Weighted average exercise price of anti–dilutive options	$	—		$	—		$	—		$	—		$	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)



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Pre–tax pre–provision earnings from adjusted operations
Income before income taxes	$	4,154		$	4,081		$	10,501		$	8,483
Provision for (recovery of) loan losses	(225		)	(525		)	(15		)	300
	3,929			3,556			10,486			8,783
Adjustments:
Equity-based compensation	—			107			1,076			875
Nonperforming asset management	84			89			215			300
Loss (gain) on sale of other real estate owned	69			(15		)	100			(15		)
Valuation adjustments of other real estate owned	227			115			301			244
Operations of other real estate owned	107			143			460			539
Adjustments	487			439			2,152			1,943
Pre–tax pre–provision (recovery) earnings from adjusted operations	$	4,416		$	3,995		$	12,638		$	10,726

Pre–tax pre–provision (recovery) earnings from adjusted operations to average total assets ⁽¹⁾	1.09		%	1.06		%	1.05		%	0.95		%


(1)	Annualized

Page 10

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

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

FOR THE LATEST FIVE QUARTERS



	2017									2016
	IIIQ			IIQ			IQ			IVQ			IIIQ
Pre–tax pre–provision (recovery) earnings from adjusted operations
Income before income taxes	$	4,154		$	4,144		$	2,203		$	3,717		$	4,081
Provision for (recovery of) loan losses	(225		)	49			161			(539		)	(525		)
	3,929			4,193			2,364			3,178			3,556
Adjustments:
Equity-based compensation	—			—			1,076			107			107
Nonperforming asset management	84			27			104			99			89
Loss (gain) on sale of other real estate owned	69			15			16			(113		)	(15		)
Valuation adjustments of other real estate owned	227			54			20			70			115
Operations of other real estate owned	107			176			177			121			143
	487			272			1,393			284			439
Pre–tax pre–provision (recovery) earnings from adjusted operations	$	4,416		$	4,465		$	3,757		$	3,462		$	3,995

Pre–tax pre–provision (recovery) earnings from adjusted operations to average total assets⁽¹⁾	1.09		%	1.11		%	0.94		%	0.88		%	1.06		%


(1)	Annualized

Page 11

Attached files

Stock widget

Investing forum

BankFinancial CORP Reports