BankFinancial : Third Quarter, 2023

2023

2022

IIIQ

IIQ

IQ

IVQ

IIIQ

PERFORMANCE MEASUREMENTS

Return on assets (ratio of net income to average total

assets) (1)

0.63%

0.61%

0.68%

0.86%

0.79%

Return on equity (ratio of net income to average equity) (1)

6.16

6.02

6.96

9.01

8.31

Net interest rate spread (1)

3.16

3.23

3.41

3.39

3.42

Net interest margin (1)

3.56

3.56

3.66

3.59

3.52

Efficiency ratio (2)

76.02

79.11

74.51

65.12

69.70

Noninterest expense to average total assets (1)

2.86

2.94

2.65

2.50

2.60

Average interest-earning assets to average interest-bearing

liabilities

136.78

136.86

135.85

137.62

137.90

Number of full service offices

18

18

18

20

20

Employees (full time equivalents)

200

198

202

203

199

SUMMARY STATEMENT OF FINANCIAL CONDITION

ASSETS

Cash and due from other financial institutions

$

19,691

$

20,401

$

19,963

$

12,046

$

11,753

Interest-bearing deposits in other financial institutions

151,870

94,930

57,042

54,725

204,378

Securities, at fair value

158,425

169,647

170,239

210,338

199,339

Loans receivable, net

1,105,604

1,170,767

1,225,288

1,226,743

1,141,799

Foreclosed assets, net

902

950

1,393

476

524

Stock in Federal Home Loan Bank and Federal Reserve

Bank, at cost

7,490

7,490

7,490

7,490

7,490

Premises held-for-sale

540

540

1,246

-

-

Premises and equipment, net

22,914

22,957

22,955

24,956

24,949

Bank-owned life insurance

18,556

18,644

18,731

18,815

18,879

Deferred taxes

4,979

5,476

5,395

5,480

5,428

Other assets

14,483

14,894

14,368

14,373

14,957

Total assets

$

1,505,454

$

1,526,696

$

1,544,110

$

1,575,442

$

1,629,496

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

$

1,275,828

$

1,303,720

$

1,315,214

$

1,374,934

$

1,425,258

Borrowings

25,000

25,000

35,000

-

-

Subordinated notes, net of unamortized issuance costs

19,667

19,656

19,645

19,634

19,623

Other liabilities

31,204

26,017

21,892

29,203

33,545

Total liabilities

1,351,699

1,374,393

1,391,751

1,423,771

1,478,426

Stockholders' equity

153,755

152,303

152,359

151,671

151,070

Total liabilities and stockholders' equity

$

1,505,454

$

1,526,696

$

1,544,110

$

1,575,442

$

1,629,496

2023

2022

IIIQ

IIQ

IQ

IVQ

IIIQ

SUMMARY STATEMENT OF OPERATIONS

Total interest income

$

16,894

$

16,178

$

16,160

$

16,064

$

14,930

Total interest expense

3,940

3,235

2,660

2,076

1,008

Net interest income

12,954

12,943

13,500

13,988

13,922

Provision for (recovery of) credit losses

136

(188

)

48

743

350

Net interest income after provision for (recovery of) credit losses

12,818

13,131

13,452

13,245

13,572

Noninterest income

1,240

1,239

313

1,406

1,287

Noninterest expense

10,790

11,220

10,292

10,039

10,601

Income before income tax

3,268

3,150

3,473

4,612

4,258

Income tax expense

899

838

840

1,174

1,037

Net income

$

2,369

$

2,312

$

2,633

$

3,438

$

3,221

Basic and diluted earnings per common share

$

0.19

$

0.18

$

0.21

$

0.27

$

0.25

NONINTEREST INCOME AND EXPENSE

Noninterest Income

Deposit service charges and fees

$

836

$

830

$

816

$

835

$

829

Loan servicing fees

98

141

129

240

59

Trust insurance commissions and annuities income

290

276

367

266

287

(Loss) earnings on bank-owned life insurance

(88

)

(87

)

(84

)

(64

)

(14

)

Losses on sales of securities

-

-

(454)

-

-

Gain (loss) on sale of premises and equipment

-

13

(4

)

-

-

Valuation adjustment on bank premises held-for-sale

-

(32)

(553)

-

-

Other

104

98

96

129

126

Total noninterest income

$

1,240

$

1,239

$

313

$

1,406

$

1,287

Noninterest Expense

Compensation and benefits

$

5,369

$

5,629

$

5,555

$

5,366

$

5,241

Office occupancy and equipment

2,046

2,031

2,038

1,944

1,970

Advertising and public relations

171

262

190

202

138

Information technology

944

965

849

926

894

Professional fees

366

355

317

262

245

Supplies, telephone, and postage

311

295

359

342

342

FDIC insurance premiums

222

282

154

111

134

Other

1,361

1,401

830

886

1,637

Total noninterest expense

$

10,790

$

11,220

$

10,292

$

10,039

$

10,601

2023

2022

IIIQ

IIQ

IQ

IVQ

IIIQ

LOANS

One-to-four family residential real estate

$

19,233

$

20,448

$

21,475

$

23,133

$

24,523

Multi-family mortgage

528,251

542,165

544,673

537,394

482,462

Nonresidential real estate

117,641

120,505

123,360

119,705

115,770

Commercial loans and leases

447,687

495,520

544,216

553,056

524,067

Consumer

1,351

1,355

1,596

1,584

2,363

1,114,163

1,179,993

1,235,320

1,234,872

1,149,185

Allowance for credit losses

(8,559)

(9,226)

(10,032)

(8,129)

(7,386)

Loans, net

$

1,105,604

$

1,170,767

$

1,225,288

$

1,226,743

$

1,141,799

LOAN ORIGINATIONS (1)

One-to-four family residential real estate

$

137

$

128

$

173

$

215

$

592

Multi-family mortgage

5,902

6,686

17,097

67,888

44,690

Nonresidential real estate

834

200

5,436

7,694

8,947

Commercial loans

172,081

157,704

181,227

179,421

168,438

Equipment finance

14,442

7,290

24,623

90,157

53,982

Consumer

514

539

565

544

544

$

193,910

$

172,547

$

229,121

$

345,919

$

277,193

Weighted average interest rate

9.11

%

9.24

%

8.67

%

6.88

%

6.26

%

LOAN PAYMENTS and PAYOFFS (2)

One-to-four family residential real estate

$

1,409

$

1,139

$

1,826

$

1,525

$

2,296

Multi-family mortgage

19,784

9,095

10,151

13,465

48,158

Nonresidential real estate

3,253

2,934

1,967

3,708

9,460

Commercial loans

176,493

169,402

168,461

177,205

160,502

Equipment finance

56,844

43,567

45,250

64,144

56,779

Consumer

529

675

615

541

525

$

258,312

$

226,812

$

228,270

$

260,588

$

277,720

Weighted average interest rate

7.86

%

8.35

%

8.20

%

6.97

%

5.88

%

2023

2022

IIIQ

IIQ

IQ

IVQ

IIIQ

CREDIT QUALITY:

Nonperforming Assets:

Nonaccrual loans:

One-to-four family residential real estate

$

40

$

45

$

55

$

92

$

715

Multi-family mortgage

-

148

-

-

-

Commercial loans and leases

23,468

23,965

8,807

1,310

525

Consumer

-

-

-

5

-

23,508

24,158

8,862

1,407

1,240

Loans past due over 90 days still accruing

6,245

-

-

238

415

Foreclosed assets, net

Other real estate owned

468

472

472

472

243

Other foreclosed assets

434

478

921

4

281

902

950

1,393

476

524

Nonperforming assets

$

30,655

$

25,108

$

10,255

$

2,121

$

2,179

Asset Quality Ratios

Nonperforming assets to total assets

2.04%

1.64%

0.66%

0.13%

0.13%

Nonperforming loans to total loans (1)

2.67

2.05

0.72

0.13

0.14

Nonperforming commercial-related loans to total commercial-

related loans (2)

2.72

2.08

0.73

0.13

0.08

Nonperforming residential and consumer loans to total residential

and consumer loans

0.19

0.21

0.24

0.39

2.66

Allowance for credit losses to nonperforming loans

28.77

38.19

113.20

494.16

446.28

Concentrations of Credit

Commercial real estate for FFIEC concentration limits

$

624,469

$

641,022

$

645,768

$

634,482

$

575,526

% FFIEC total capital

363.55%

372.44%

374.63%

365.95%

329.27%

Multi-family mortgage loans - 50% risk based capital qualified

(included above)

$248,128

$175,902

$122,213

$101,052

$103,745

% FFIEC total capital

144.45%

102.20%

70.90%

58.28%

59.35%

2023

2022

IIIQ

IIQ

IQ

IVQ

IIIQ

SUBSTANDARD PERFORMING LOANS

One-to-four family residential real estate

$

282

$

272

$

280

$

327

$

163

Multi-family mortgage

-

-

148

-

-

Commercial loans and leases

5,685

3,759

3,846

4,041

50

Consumer

3

5

5

4

4

$

5,970

$

4,036

$

4,279

$

4,372

$

217

ALLOWANCE FOR CREDIT LOSSES

Beginning balance

$

9,226

$

10,032

$

8,129

$

7,386

$

7,202

Impact of adopting ASC 326

-

-

1,907

-

-

Charge-offs:

One-to-four family residential real estate

-

-

-

-

(71)

Commercial loans and leases

(889

)

(638

)

(79

)

(1

)

(104

)

Consumer

(14)

(7)

(22)

(12)

(16)

(903

)

(645

)

(101

)

(13

)

(191

)

Recoveries:

One-to-four family residential real estate

32

7

5

4

2

Multi-family mortgage

4

6

5

5

6

Nonresidential real estate

-

-

-

-

2

Commercial loans and leases

20

6

1

4

15

Consumer

-

-

1

-

-

56

19

12

13

25

Net charge-offs

(847)

(626)

(89)

-

(166)

Provision for (recovery for) credit losses - loans

180

(180

)

85

743

350

Ending balance

$

8,559

$

9,226

$

10,032

$

8,129

$

7,386

Allowance for credit losses to total loans

0.77%

0.78%

0.81%

0.66%

0.64%

Net charge-offs ratio (1)

(0.30

)

(0.21

)

(0.03

)

-

(0.06

)

2023

2022

IIIQ

IIQ

IQ

IVQ

IIIQ

DEPOSITS

Noninterest-bearing demand

$

258,318

$

278,170

$

287,493

$

280,625

$

307,116

Interest-bearing NOW accounts

326,874

349,374

360,441

400,416

409,135

Money market accounts

291,154

271,194

273,256

302,863

314,436

Savings deposits

178,318

190,277

200,659

204,506

206,048

Certificates of deposit - retail

220,915

214,456

193,116

186,524

188,278

Certificates of deposit - wholesale

249

249

249

-

245

$

1,275,828

$

1,303,720

$

1,315,214

$

1,374,934

$

1,425,258

SELECTED AVERAGE BALANCES

Total average assets

$

1,511,422

$

1,526,246

$

1,553,445

$

1,605,375

$

1,632,775

Total average interest-earning assets

1,444,259

1,459,369

1,494,248

1,546,499

1,571,188

Average loans

1,141,788

1,206,175

1,225,636

1,158,474

1,147,154

Average securities

170,806

176,052

212,344

215,359

187,163

Average stock in FHLB & FRB

7,490

7,490

7,490

7,490

7,490

Average other interest-earning assets

124,175

69,652

48,778

165,176

229,381

Total average interest-bearing liabilities

1,055,874

1,066,332

1,099,950

1,123,780

1,139,368

Average interest-bearing deposits

1,011,212

1,021,023

1,066,321

1,104,152

1,119,751

Average borrowings and Subordinated notes

44,662

45,309

33,629

19,628

19,617

Average stockholders' equity

153,796

153,703

151,417

152,672

155,000

SELECTED YIELDS AND COST OF FUNDS (1)

Total average interest-earning assets

4.64

%

4.45

%

4.39

%

4.12

%

3.77

%

Average loans

4.96

4.77

4.76

4.57

4.40

Average securities

1.88

1.92

2.13

2.04

1.74

Average other interest-earning assets

5.42

5.14

4.66

3.69

2.22

Total average interest-bearing liabilities

1.48

1.22

0.98

0.73

0.35

Average interest-bearing deposits

1.36

1.08

0.87

0.67

0.29

Average cost of total deposits

1.07

0.85

0.70

0.53

0.22

Average cost of retail and commercial deposits

1.36

1.08

0.87

0.67

0.29

Average cost of wholesale deposits, borrowings and

Subordinated notes

4.18

4.21

4.34

4.01

3.96

Average cost of funds

1.18

0.96

0.79

0.58

0.27

Net interest rate spread

3.16

3.23

3.41

3.39

3.42

Net interest margin

3.56

3.56

3.66

3.59

3.52

2023

2022

IIIQ

IIQ

IQ

IVQ

IIIQ

CAPITAL RATIOS

BankFinancial Corporation (1)

Equity to total assets (end of period)

10.21

%

9.98

%

9.87

%

9.63

%

9.27

%

Tangible equity to tangible total assets (end of

period)

10.21

9.98

9.87

9.63

9.27

Risk-based total capital ratio

19.13

17.75

16.98

17.00

17.97

Common Tier 1 (CET1)

16.30

15.05

14.34

14.43

15.32

Risk-based tier 1 capital ratio

16.30

15.05

14.34

14.43

15.32

Tier 1 leverage ratio

10.38

10.23

10.03

9.73

9.55

Tier 1 capital

$

156,780

$

156,050

$

155,789

$

156,086

$

155,725

BankFinancial, NA (2)

Risk-based total capital ratio

17.90

%

16.64

%

15.88

%

16.04

%

17.19

%

Common Tier 1 (CET1)

17.10

15.83

15.04

15.28

16.47

Risk-based tier 1 capital ratio

17.10

15.83

15.04

15.28

16.47

Tier 1 leverage ratio

10.93

10.80

10.52

10.31

10.26

Tier 1 capital

$

164,172

$

163,806

$

163,249

$

165,252

$

167,403

COMMON STOCK AND DIVIDENDS

Stock Prices:

Close

$

8.62

$

8.18

$

8.75

$

10.53

$

9.46

High

9.11

8.94

10.59

10.60

10.27

Low

7.98

7.17

8.55

9.06

9.18

Common shares outstanding

12,547,390

12,600,478

12,693,993

12,742,597

12,922,174

Book value per share

$

12.25

$

12.09

$

12.00

$

11.90

$

11.69

Tangible book value per share

$

12.25

$

12.09

$

12.00

$

11.90

$

11.69

Cash dividends declared on common stock

$

0.10

$

0.10

$

0.10

$

0.10

$

0.10

Dividend payout ratio

53.16%

54.88%

48.36%

37.45%

40.53%

Stock repurchases

$

471

$

744

$

502

$

1,760

$

2,313

Stock repurchases - shares

53,088

93,515

48,604

179,577

231,311

EARNINGS PER SHARE COMPUTATIONS

Net income

$

2,369

$

2,312

$

2,633

$

3,438

$

3,221

Weighted average basic and dilutive common shares

outstanding

12,578,494

12,667,129

12,721,841

12,861,529

13,060,266

Basic and diluted earnings per common share

$

0.19

$

0.18

$

0.21

$

0.27

$

0.25