BankFinancial Corporation Reports Financial Results for 2019 and Will Host Conference Call and Webcast on February 19, 2020
February 18 2020 - 8:30AM
BankFinancial Corporation (Nasdaq - BFIN) (the “Company”) announced
today that the Company recorded net income of $11.7 million for the
year ended December 31, 2019 and basic and diluted earnings
per common share for the year ended December 31, 2019 were
$0.75.
For the fourth quarter of 2019, the Company
recorded net income of $3.4 million and basic and diluted earnings
per share of common stock of $0.22, compared to $7.4 million and
$0.44 per share for the fourth quarter of 2018. Net income for the
fourth quarter of 2018 includes $5.1 million, net of tax, of
realized and unrealized gains on sale of the Company’s Class B Visa
common shares and $763,000 in accrued expense, net of tax, related
to certain contract termination and severance payments.
The Company’s total loans decreased by $45.9
million during the fourth quarter of 2019 due to continued elevated
prepayments of multi-family and nonresidential real estate loans,
and reductions of commercial line of credit utilization by
equipment lessors. Total deposits decreased by $4.1 million due to
a $9.9 million reduction in wholesale deposits. The average yield
on the Company’s loan portfolio for the quarter ended
December 31, 2019 was 4.82%, a 5.0% increase compared to the
fourth quarter of 2018.
For the year ended December 31, 2019,
multi-family and nonresidential real estate loans declined by $73.9
million (9.6%) due to lower originations volume in 2019. Commercial
loans and commercial leases declined by $68.5 million (14.1%) due
primarily to planned reductions in investment rated leases and of
certain Regional Commercial Banking and National Healthcare Lending
commercial loan relationships, offset by modest net growth in other
commercial leases. Total commercial-related loan balances were
$1.117 billion at the end of 2019, and now comprise 95.1% of the
Company’s total loans, compared to 94.6% at the end of 2018.
The Company’s asset quality improved in 2019.
The ratio of nonperforming loans to total loans was 0.07% and the
ratio of nonperforming assets to total assets was 0.07% at December
31, 2019. Nonperforming commercial-related loans represented 0.03%
of total commercial-related loans at December 31, 2019.
Total retail and commercial deposits declined
slightly in 2019. Retail depositors continue to seek higher
interest rates, and the Company moderated its retail deposit
competitive position to better manage its cost of funds given its
strong liquidity position. Commercial depositors continue to use
excess deposit balances to repay commercial lines of credit
whenever possible. The Company’s liquid assets were 12.8% of total
assets at December 31, 2019.
The Company’s capital position remained strong
with a Tier 1 leverage ratio of 11.48% at December 31, 2019.
During 2019, the Company maintained its quarterly dividend rate at
$0.10 per share. The Company repurchased 1,203,050 common shares
during the year ended December 31, 2019, which represented 7.3% of
the Company’s common shares that were outstanding on December 31,
2018. The Company’s book value per share increased in 2019 by 0.4%
to $11.41 per share at December 31, 2019.
“Our 2019 results reflect the impact of changing
market conditions, particularly the decline in medium- and
long-term interest rates, and our continuing emphasis on
maintaining strong asset quality through decisive action on credit
exposures when necessary. The year ended with the Company in very
strong financial condition, with excellent asset quality and
liquidity. As it became clear that ‘lower-for-longer’ interest
rates, moderate-growth economic environment, and hyper-competitive
conditions in investment real estate lending would persist for an
extended period of time, we took action in the latter part of 2019
and the beginning of 2020 to fundamentally re-align our loan and
lease generation capabilities to generate higher volumes of
medium-duration assets with an appropriate risk/return profile, and
further improve noninterest income. Given the current and expected
market conditions, the recent changes to our commercial equipment
finance division, and to our commercial real estate division,
position us far better to achieve the asset generation required to
meet our financial objectives. We expect to take additional steps
to improve commercial and industrial loan and core deposit
generation during 2020 to further diversify the loan portfolio and
enhance the core deposit base. We will incur increased marketing
and technology expenses to support the loan and deposit generation
functions, but we will otherwise seek to offset these costs within
our consistent operating expense discipline. As we progressively
deploy our excess liquidity during 2020, we expect that the
increases in income will accelerate our progress towards our
original financial return goals despite the challenging
conditions,” 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 performance data and financial measures
for the most recent five quarters.
BankFinancial's management will review fourth
quarter 2019 results in a conference call and webcast for
stockholders and analysts on Wednesday, February 19, 2020 at
9:30 a.m. Chicago, Illinois Time. The conference call may be
accessed by calling (844) 413-1780 using participant passcode
7198886. 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 11:59 p.m. Chicago Time March 11, 2020.
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: |
Elizabeth A. DoolanSenior Vice President – FinanceBankFinancial
CorporationTelephone: 630-242-7151 |
|
Gregg T. AdamsPresident – Marketing & SalesBankFinancial,
NATelephone: 630-242-7234 |
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