BankFinancial Corporation Reports Financial Results for the Second Quarter 2019 and Will Host Conference Call and Webcast on ...
July 29 2019 - 4:33PM
BankFinancial Corporation (Nasdaq - BFIN) (the “Company” or
"BankFinancial") announced today that the Company reported net
income of $807,000, or $0.05 per common share, for the three months
ended June 30, 2019, compared to net income of $4.6 million,
or $0.26 per common share, for the three months ended June 30,
2018. BankFinancial also reported net income of $4.4 million,
or $0.28 per common share, for the six months ended June 30,
2019, compared to net income of $8.2 million, or $0.46 per common
share, for the six months ended June 30, 2018. The
reduction in net income reflected a $4.4 million loss resulting
from the non-recourse sale of a $7.8 million Chicago commercial
credit relationship during the second quarter of 2019 after the
borrowers placed the going concern status of their business in
jeopardy by failing to make excise tax payments in violation of
their agreements with the State of Illinois.
For the second quarter of 2019, net interest
income before provision for loan losses was stable at $13.1
million, a decline of 0.9% from the previous quarter.
Deposit, loan and trust fee income increased $96,000, or 8.3%, from
the previous quarter. Non-interest expense was $9.5 million,
a decline of 6.2% from the previous quarter, due to lower
compensation and benefits and lower occupancy costs.
The average yield on our loan and lease
portfolio for the quarter ended June 30, 2019 was 4.76%,
compared to an average loan and lease portfolio yield of 4.77% for
the quarter ended March 31, 2019. The average yield on
our securities portfolio increased to 2.80% for the quarter ended
June 30, 2019, compared to an average yield of 2.67% for the
quarter ended March 31, 2019. The average cost of retail
and commercial deposits increased to 1.13% for the quarter ended
June 30, 2019, compared to an average cost of 1.08% for the
quarter ended March 31, 2019. The average cost of
wholesale deposits and borrowings increased to 2.39% for the
quarter ended June 30, 2019, compared to an average cost of
2.29% for the quarter ended March 31, 2019. Our net
interest margin declined slightly to 3.60% for the quarter ended
June 30, 2019, compared to 3.64% for the quarter ended
March 31, 2019.
For the second quarter of 2019, commercial loans
decreased by $18.6 million (10.8%) primarily due to the
non-recourse loan sale and reduced line utilization by commercial
equipment lessors. Multi-family real estate loans decreased
by $14.4 million (2.3%), compared to March 31, 2019 due to
lower originations volume and elevated payoffs due to project sales
or cash-out refinances by other lenders. One-to-four
residential real estate loan balances declined due to portfolio
amortization and prepayments.
The ratio of nonperforming loans to total loans
was 0.24% and the ratio of non-performing assets to total assets
was 0.23% at June 30, 2019. Non-performing commercial-related
loans represented 0.17% of total commercial-related loans.
We continued various steps to emphasize the
origination of retail certificates of deposit because they align
with our current interest rate risk management strategies better
than retail money market accounts. As a result, retail
certificate of deposit accounts increased by $7.4 million (2.2%)
compared to March 31, 2019 and retail money market deposit
accounts declined by $1.7 million (0.7%). Total wholesale
deposits and borrowings declined by $19.1 million (17.6%) during
the second quarter of 2019 as we utilized excess liquidity to pay
off maturing wholesale deposits and borrowings.
The Company’s capital position remained strong
with a Tier 1 leverage ratio of 11.04%. During the first half
of 2019, we repurchased 1,107,550 common shares, which represented
6.7% of the common shares outstanding at December 31,
2018.
“The operating trends for the second quarter of
2019 were stable to positive. Although the loan sale
adversely impacted net income for the quarter, we will continue our
focus on our targets for selective loan and deposit portfolio
growth, and restoring our positive trends in earnings and operating
efficiency for the remainder of 2019. The loan sale decision
reflects our firm belief that prompt and definitive action in loan
portfolio management is essential to preserving the predictability
of future earnings and achievement of the Company’s business plan
objectives.” said F. Morgan Gasior, the Chairman and CEO of the
Company.
The Company’s Quarterly Financial and
Statistical Supplement will be available today on BankFinancial's
website, www.bankfinancial.com on the “Investor Relations”
page, and through the EDGAR database on the SEC's website,
www.sec.gov. The Quarterly Financial and Statistical Supplement
includes comparative GAAP and non-GAAP performance data and
financial measures for the most recent five quarters.
BankFinancial's management will review second
quarter 2019 results in a conference call and webcast for
stockholders and analysts on Tuesday, July 30, 2019 at 9:30
a.m. Chicago, Illinois Time. The conference call may be
accessed by calling (844) 413-1780 using participant passcode
2366368. The conference call will be simultaneously webcast at
www.bankfinancial.com, “Investor Relations” page. For those
unable to participate in the conference call, the webcast will be
archived through Tuesday, August 13, 2019 on our website.
BankFinancial Corporation is the holding company
for BankFinancial, NA, a national bank providing financial services
to individuals, families and businesses through 19 full-service
banking offices, located in Cook, DuPage, Lake and Will Counties,
Illinois and to selected commercial loan and deposit customers on a
regional or national basis. BankFinancial Corporation's common
stock trades on the Nasdaq Global Select Market under the symbol
BFIN. Additional information may be found at the company's website,
www.bankfinancial.com.
This release includes “forward-looking
statements” as defined in the Private Securities Litigation Reform
Act of 1995. A variety of factors could cause BankFinancial’s
actual results to differ from those expected at the time of this
release. For a discussion of some of the factors that may cause
actual results to differ from expectations, please refer to
BankFinancial’s most recent Annual Report on Form 10-K as filed
with the SEC, as supplemented by subsequent filings with the
SEC. Investors are urged to review all information contained
in these reports, including the risk factors discussed
therein. Copies of these filings are available at no cost on
the SEC's web site at www.sec.gov or on BankFinancial’s web
site at www.bankfinancial.com. Forward-looking statements
speak only as of the date they are made, and we do not undertake to
update them to reflect changes.
For
Further Information, Contact: |
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Shareholder, Analyst and
Investor Inquiries: |
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Media Inquiries: |
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Elizabeth A. DoolanSenior Vice
President – FinanceBankFinancial CorporationTelephone:
630-242-7151 |
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Gregg T. AdamsPresident –
Marketing & SalesBankFinancial, NATelephone: 630-242-7234 |
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