BankFinancial Corporation Reports Financial Results for 2020 and Will Host Conference Call and Webcast on Wednesday, Febru...
February 01 2021 - 4:15PM
BankFinancial Corporation (Nasdaq – BFIN) (the “Company”) announced
today that the Company recorded net income of $9.2 million for the
year ended December 31, 2020 and basic and diluted earnings per
common share of $0.61 for the year ended December 31, 2020.
The Company recorded net income of $2.4 million
and basic and diluted earnings per common share of $0.17
for the fourth quarter of 2020, compared to $3.4 million and $0.22
per share for the fourth quarter of 2019.
The Company’s net income for the fourth quarter
of 2020 included $605,000 of income related to loan prepayments,
$255,000 of commercial credit facilities fees, and $162,000 of
fee income from the Paycheck Protection Program and a modest
increase in trust income. These increases were partially
offset by a reduction of deposit services income related to retail
account activity. The Company’s noninterest expense for the
fourth quarter of 2020 was consistent with the prior quarter
despite increases in occupancy expenses related to COVID-19 health
security and risk mitigation, real estate taxes on branch
facilities, personnel expenses related to equipment finance
incentive plans and recruiting expenses related to the addition of
originations and underwriting personnel for the Commercial Finance
Division and Treasury Services Department.
Due to exceptionally high prepayments of
multi-family loans, the Company’s total loans decreased by $63.3
million during the fourth quarter of 2020. Commercial loans and
leases increased by $25.4 million due to strong originations of
commercial equipment finance transactions resulting from the
expansion of our equipment finance products in 2020. Multi-family
mortgage loans declined by $70.6 million due to loan prepayments
primarily related either to project sales, or to equity cash-out
refinances in excess of the Company’s credit risk parameters
or legal lending limits, which occurred in the latter half of the
quarter within our geographic markets outside the Chicago
metropolitan area. Nonresidential real estate loans declined by
$15.8 million, due in part to planned reductions in exposure to
commercial retail shopping assets, borrower repayment of loans from
available excess liquidity, and the repayment in full of a $1.6
million nonperforming loan. Residential real estate loans declined
by $3.1 million due to accelerated repayments and the Company’s
termination of residential lending in 2017. Total deposits
decreased by $8.7 million, as a $39.7 million increase in core
retail and business deposits was offset by a $48.4 million decline
in retail and wholesale certificates of deposit.
Total loans declined by $165.4 million for the
year ended December 31, 2020, primarily due to a $111.5 million
decline in multi-family mortgage loans and a $56.3 million decline
in commercial line of credit balances resulting from COVID-19
fiscal stimulus payments to healthcare providers. Total deposits
increased by $108.8 million, primarily due to a $257.8 million
increase in core retail and business deposits, partially offset by
a $93.9 million decrease in retail certificates of deposit, and a
$55.2 million decrease in wholesale certificates of deposits. As a
result of the changes in the loan and deposit portfolios, the
Company’s liquid assets were 31.5% of total assets at December 31,
2020.
The Company’s asset quality remained stable in
2020. The ratio of nonperforming loans to total loans was 0.12% and
the ratio of nonperforming assets to total assets was 0.09% at
December 31, 2020. Nonperforming commercial-related loans
represented 0.03% of total commercial-related loans at December 31,
2020. Our allowance for losses on loans and leases increased to
0.77% of total loans as of December 31, 2020, compared to 0.65% at
December 31, 2019, reflecting the increased inherent credit risks
arising from the COVID-19 pandemic.
The Company’s capital position remained strong,
with a Tier 1 leverage ratio of 10.79% at December 31, 2020.
Throughout 2020, the Company maintained its quarterly
dividend rate at $0.10 per common share. The Company repurchased
508,699 common shares during the year ended December 31, 2020,
which represented 3.3% of the common shares that were outstanding
on December 31, 2019. The Company’s book value per share increased
in 2020 by 2.6% to $11.71 per share at December 31, 2020.
F. Morgan Gasior, the Chairman and CEO of the
Company, said, “The Company ended 2020 in a strong financial
condition, with excellent asset quality and considerably more
liquid assets. Our financial results for 2020 reflect the
significant impact of the material declines in interest rates,
increases in market and borrower liquidity due to coronavirus
pandemic fiscal and monetary stimulus actions, and our continued
emphasis on consistent credit risk management. Notwithstanding the
disruption caused by COVID-19, we increased our originations of
commercial equipment finance transactions by 57% in 2020 due to the
expansion of our product lines to include governmental,
middle-market and small-ticket transactions. We also accelerated
the development of our Commercial Finance credit products to
include general commercial, governmental and certain specialty
markets in addition to our Equipment Finance lessor credit and our
healthcare lending capabilities. The continued expansion of our
Equipment Finance and Commercial Finance products and originations
capabilities in 2021 will help us deploy our significant excess
liquidity and further enhance the diversification of our commercial
credit portfolios. We also began to expand our Treasury Services
capabilities, focusing on generating noninterest income and
commercial deposits that align with our Equipment Finance,
Commercial Real Estate and Commercial Finance credit
products.”
Mr. Gasior added that, “Despite the adverse
impacts of the coronavirus pandemic and rapid changes in market
conditions, we continue to believe that the actions we took in 2020
further enable us to achieve the asset generation that we need to
meet our financial objectives. We will incur some additional
expenses for personnel, marketing and technology to support these
credit, business deposit and noninterest income generation
activities, but we will seek to offset these costs as much as
possible within our consistent operating expense discipline. As we
progressively deploy our excess liquidity during 2021, we expect
that the increases in income will accelerate our progress towards
our financial return goals despite the challenging conditions.”
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 fourth
quarter 2020 results in a conference call and webcast for
stockholders and analysts on Wednesday, February 3,
2021 at 9:30 a.m. Chicago, Illinois Time. The conference call
may be accessed by calling (844) 413-1780 using
participant passcode 2253316. 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 Wednesday, February
24, 2021 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.
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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 |
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Gregg T. AdamsPresident –
Marketing & SalesBankFinancial, NATelephone: 630-242-7234 |
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