BankFinancial Corporation Reports Financial Results for the First Quarter 2019 and Will Host Conference Call and Webcast on T...
April 16 2019 - 4:20PM
BankFinancial Corporation (Nasdaq - BFIN) (the “Company”) announced
today that the Company reported net income of $3.6 million, or
$0.22 per common share, for the three months ended March 31,
2019, compared to net income of $3.6 million, or $0.20 per common
share, for the three months ended March 31, 2018.
For the first quarter of 2019, multifamily
residential real estate loans increased by $14.5 million (2.3%),
compared to December 31, 2018. Commercial and industrial loans
decreased by $15.1 million (8.1%) due to reduced line utilization
by commercial equipment lessors, and commercial leases decreased by
$9.6 million (3.2%), primarily due to the planned reduction of
lower-yielding investment-grade lease balances. Residential and
commercial real estate loan balances declined due to portfolio
amortization and prepayments.
The Company’s asset quality remained favorable.
The ratio of nonperforming loans to total loans was 0.11% and the
ratio of non-performing assets to total assets was 0.15% at
March 31, 2019. Non-performing commercial-related loans
represented 0.05% of total commercial-related loans.
We took 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 $9.2 million (2.8%) compared to
December 31, 2018 and retail money market deposit accounts
declined by $7.3 million (2.8%). The decline in retail money market
accounts was also partially attributable to retail money market
accounts balance transfers to our Trust Department. Total wholesale
deposits and borrowings declined by $18.6 million (14.6%) during
the first quarter of 2019.
The average yield on our loan and lease
portfolio at March 31, 2019 was 4.77%, compared to an average
loan and lease portfolio yield of 4.59% at December 31, 2018.
The average yield on our securities portfolio was 2.67% at
March 31, 2019, compared to an average yield of 2.38% at
December 31, 2018. The average cost of retail and commercial
deposits increased to 1.08% at March 31, 2019, compared to an
average cost of 0.97% at December 31, 2018. The average cost
of wholesale deposits and borrowings increased to 2.29% at
March 31, 2019, compared to an average cost of 2.09% at
December 31, 2018. Our net interest margin expanded to 3.35%
for the quarter ended March 31, 2019, compared to 3.24% for
the quarter ended December 31, 2018.
Deposit services income continued to decrease
due to reduced card services activity, and loan fee income
decreased due to reduced line utilization. Trust income declined
slightly due to changes in the relative mix of fee-based products.
We realized a $295,000 gain on sale of the Bank’s remaining
investment in VISA class B common shares.
Non-interest expense declined in part due to
reduced total accruals for contract or severance payments; however,
we recorded an additional $250,000 of compensation expense in the
first quarter of 2019 related to organizational changes focused on
reducing compensation levels for the remainder of 2019 and future
years.
The Company’s capital position remained strong
with a Tier 1 leverage ratio of 11.13%. During the first quarter of
2019, we repurchased 837,015 common shares, which represented 5.1%
of the common shares outstanding at December 31, 2018.
“Our financial results for the first quarter of
2019 reflect continued stability in earnings and effective risk
management. We look forward to renewed growth in the loan and
deposit portfolios, and further enhancements to earnings and
operating efficiency during the remainder of 2019.” 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 “Stockholder
Information” 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 first
quarter 2019 results in a conference call and webcast for
stockholders and analysts on Thursday, April 18, 2019 at 9:30
a.m. Chicago, Illinois Time. The conference call may be accessed by
calling (844) 413-1780 using participant passcode 6528486. 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 Thursday, May 2, 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: |
|
|
Shareholder, Analyst
and Investor Inquiries: |
|
Media Inquiries: |
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|
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Elizabeth A.
DoolanSenior Vice President – FinanceBankFinancial
CorporationTelephone: 630-242-7151 |
|
Gregg T. AdamsPresident
– Marketing & SalesBankFinancial, NATelephone:
630-242-7234 |
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