Form 8-K - Current report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 5, 2024

BANKFINANCIAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

Maryland

0-51331

75-3199276

(State or Other Jurisdiction

of Incorporation)

(Commission

File No.)

(I.R.S. Employer

Identification No.)


	60 North Frontage Road, Burr Ridge, Illinois (Address of Principal Executive Offices)	60527 (Zip Code)

Registrant’s telephone number, including area code: (800) 894-6900

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		BFIN		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

2.02 Results of Operations and Financial Condition.

BankFinancial Corporation (the “Company”) provides the following information with respect to operating results for the quarter ended September 30, 2024.

THIRD QUARTER 2024 OVERVIEW

We reported net income of $2.0 million, or $0.16 per common share for the three months ended September 30, 2024. At September 30, 2024, we had total assets of $1.418 billion, total loans of $923.9 million, total deposits of $1.199 billion and stockholders' equity of $159 million.

In the third quarter of 2024, interest income decreased by $769,000 primarily due to declines in commercial loans and lease balances. Interest expense increased by $146,000 due to retail depositors seeking higher-yielding account types. Our tax-equivalent net interest margin decreased to 3.47% from 3.67%.

Noninterest income increased by $206,000, primarily due to increased deposit service charges and fees and trust department income, as well as improved returns on bank-owned life insurance.

Noninterest expense decreased by $1.1 million. Compensation and benefits declined by $502,000 due to a 9% reduction in full time equivalent headcount since the end of the first quarter of 2024 and reduced incentive compensation expense. Office occupancy and information technology expense declined by $407,000 due to adjustments to estimated real estate tax accruals and reduced transaction processing software expense.

Cash & Cash Equivalent Assets

For the quarter ended September 30, 2024, cash and cash equivalent assets represented 9.8% of total assets, compared to 10.3% of total assets at June 30, 2024.

Investment Securities Portfolio

For the quarter ended September 30, 2024, total investment securities increased by $42.0 million due to $139.0 million in purchases, offset by $98.5 million of maturities and redemptions of U.S. Treasury Notes and U.S. government-sponsored agency securities. The investment securities portfolio had a weighted-average term to maturity of 1.09 years as of September 30, 2024, with an after-tax unrealized loss of $842,000 or 0.5% of Tier 1 capital.

Loan Portfolio

Our loan portfolio declined by $63.8 million in the third quarter of 2024. Multi-family residential loans decreased by $3.2 million (0.6%) due to scheduled loan repayments. Commercial finance balances decreased by $21.8 million (23.5%) primarily due to a planned $18.8 million reduction in balances within the healthcare finance portfolio and lessor finance portfolio for risk management purposes. Equipment finance balances declined by $37.2 million (15.1%) due to scheduled repayments, partially offset by modestly higher originations of corporate equipment finance transactions. The average yield on our loan portfolio decreased to 5.07%.

Loan demand for all commercial credit categories was muted for the first two months of the third quarter of 2024. Towards the end of the quarter, demand for multi-family residential loans and nonresidential real estate loans expected to fund in the fourth quarter of 2024 increased due to lower market interest rates and expanded marketing activities. Demand for new equipment finance transactions remained stagnant while the equipment finance pipeline duration extended further due to delays in delivery and installation for approved equipment finance transactions. Demand for commercial finance transactions and commercial line utilization remained sporadic, as borrowers utilized available liquidity instead of unused credit availability; however, increased marketing to small- and medium-businesses continued to produce modest improvements in new credit facility opportunities compared to previous quarters.

Asset Quality

The ratio of nonperforming assets to total assets increased to 1.71% at September 30, 2024, from 1.54% at June 30, 2024, inclusive of two U.S. Government equipment finance transactions totaling $18.9 million. Excluding these two U.S. Government transactions, our ratio of nonperforming assets to total assets would have been 0.38% at September 30, 2024. The Bank placed a $1.5 million multi-family residential borrower relationship in the Chicago MSA market on nonaccrual status until the pending receivership and sale of the collateral is consummated in the fourth quarter of 2024. Past due trends improved, and nonperforming asset resolution activity continued to accelerate during the third quarter of 2024.

Our allowance for credit losses increased to 0.85% of total loans at September 30, 2024, compared to 0.82% at June 30, 2024.

Deposit Portfolio

Total deposits decreased by $52.9 million (4.2%). Noninterest-bearing demand deposit balances declined by $35.7 million, primarily due to the withdrawal of $20.0 million deposited in connection with the acquisition of a commercial real estate property late in the second quarter of 2024, the liquidation of $4.8 million in cash collateral securing a commercial finance letter of credit drawn by the beneficiary, and typical balance volatility for certain other commercial depositors. Interest-bearing deposit balances (consisting of interest-bearing NOW accounts, money market accounts and savings deposits) declined by $22.1 million primarily due to seasonal expenses such as real estate taxes, college tuition and capital expenditures, with competition from equity markets and non-bank money market mutual funds also being a contributing factor. Certificates of deposits increased by $5.0 million due to retail depositors seeking higher long-term yields in anticipation of lower short-term market yields in the future. The cost of our total retail and commercial deposits increased to 1.94% during the third quarter of 2024 from 1.87% at June 30, 2024. Core deposits represented 81% of total deposits, with noninterest-bearing demand deposits representing 19% of total deposits at September 30, 2024. Total commercial deposits were 20% of total deposits at September 30, 2024 and 22% of total deposits at June 30, 2024. FDIC-insured deposits represented 84.42% of total deposits and collateralized public funds deposits represented 1.92% of total deposits as of September 30, 2024.

Capital Adequacy

The Company’s capital position remained strong, with a Tier 1 leverage ratio of 11.11% at September 30, 2024. The book value of the Company’s common shares increased to $12.77 at September 30, 2024 from $12.64 at June 30, 2024.

Item 7.01. Regulation FD Disclosure.

The Company provides the following information with respect to projected operations for the remainder of the year ending December 31, 2024.

FOURTH QUARTER OUTLOOK

Cash & Cash Equivalent Assets

For the fourth quarter of 2024, we expect cash and cash equivalent assets to be between 10% and 12% of total assets.

Investment Securities Portfolio

For the fourth quarter of 2024, we expect our investment securities portfolio balance to decline between 5% and 15% as we utilize maturing investment securities proceeds for commercial credit originations, commercial finance line utilization, maintaining short-term liquidity, and funding deposit withdrawals.

Loan Portfolio

Based on current loan origination pipelines, scheduled repayments and expected market conditions, we expect our loan portfolio to increase between 1% and 5% during the fourth quarter of 2024 due to improved pipelines for multi-family residential real estate loans and, to a lesser extent, commercial finance lines of credit; however, increases in prepayment rates on multi-family residential real estate loans related to project sales or delays in new loan origination closings (particularly within the equipment finance transaction pipeline) could affect these expected results. We will continue to focus on originating corporate and middle-market equipment finance transactions, commercial finance credit facilities, small business credit facilities and multi-family residential and nonresidential real estate loans to improve the yield on the loan portfolio while maintaining an appropriate balance of liquidity and interest rate risk.

Deposit Portfolio

For the fourth quarter of 2024, total deposit balances are expected to decline between 0% to 2% principally due to balance volatility by certain higher-balance commercial deposit customers and declines in public-fund deposit balances. We expect our cost of deposits to decrease by 0.05% to 0.10% during the fourth quarter of 2024.

Net Interest Income

For the fourth quarter of 2024, based on the expected activity in the loan, deposit and investment portfolios, we expect our net interest income before provision for credit losses to be consistent with the third quarter of 2024, as new loan originations late in the period will provide very limited benefit to interest income for the quarter and deposit interest expense will slowly diminish during the quarter, depending on Federal Reserve actions and market competition for deposits.

Noninterest Income

For the fourth quarter of 2024, we expect noninterest income to grow between 5% and 10% compared to the third quarter of 2024 due to higher revenues from retail deposit services, commercial/treasury services, trust services and bank-owned life insurance.

Noninterest Expense

For the fourth quarter of 2024, we expect noninterest expense to increase between 3% and 6% compared to the third quarter of 2024 due to increased seasonal fourth quarter expenses, particularly for occupancy expenses.

Item 8.01. Other Events.

On November 5, 2024, the Company filed its Quarterly Report on Form 10-Q for the third quarter ended September 30, 2024 and issued the Quarterly Financial and Statistical Supplement for the latest five quarters. The Quarterly Financial and Statistical Supplement is included as Exhibit 99.1 to this report.

This current report 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.

Item 9.01 Financial Statements and Exhibits.

(a)

Not Applicable.

(b)

Not Applicable.

(c)

Not Applicable.

(d)

Exhibits.

	Exhibit No.	Description
	99.1	Quarterly Financial and Statistical Supplement
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		BANKFINANCIAL CORPORATION

Dated:	November 5, 2024	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board, Chief Executive Officer and President

Exhibit 99.1

BANKFINANCIAL CORPORATION

Third QUARTER 2024

QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT

FOR THE LATEST FIVE QUARTERS

Note: Certain reclassifications have been made in the prior period’s financial statements and reflected in the Selected Quarterly Financial and Statistical Data tables to conform to the current period’s presentation.

The information and statistical data contained herein have been prepared by BankFinancial Corporation and have been derived or calculated from selected unaudited quarterly and period–end historical financial statements prepared in accordance with accounting principles generally accepted in the United States. BankFinancial Corporation is under no obligation to update, keep current, or continue to provide the information contained herein. This information is provided solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or establish any business relationships with BankFinancial Corporation or its subsidiary.

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2024									2023
	IIIQ			IIQ			IQ			IVQ			IIIQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾		0.56	%		0.58	%		0.46	%		0.56	%		0.63	%
Return on equity (ratio of net income to average equity) ⁽¹⁾		5.03			5.44			4.38			5.37			6.16
Net interest rate spread ⁽¹⁾		2.90			3.11			3.07			3.01			3.16
Net interest margin (TEB) ^{(1) (2)}		3.47			3.67			3.59			3.48			3.57
Efficiency ratio⁽³⁾		76.73			80.39			84.11			77.39			76.02
Noninterest expense to average total assets ⁽¹⁾		2.82			3.03			3.17			2.92			2.86
Average interest–earning assets to average interest–bearing liabilities		133.26			134.44			135.89			136.25			136.78
Number of full service offices		18			18			18			18			18
Employees (full time equivalents)		198			206			217			205			200

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	19,412		$	19,505		$	18,533		$	19,781		$	19,691
Interest-bearing deposits in other financial institutions		118,866			132,273			113,907			158,703			151,870
Interest-bearing time deposits in other financial institutions		22,005			34,913			30,748			29,513			2,725
Securities, at fair value		264,905			222,906			239,549			153,203			155,700
Loans receivable, net		923,939			987,745			1,007,980			1,050,761			1,105,604
Foreclosed assets, net		1,966			1,898			2,332			2,777			902
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		—			—			—			523			540
Premises and equipment, net		22,674			22,765			22,614			22,950			22,914
Bank-owned life insurance		18,277			18,291			18,382			18,469			18,556
Deferred taxes		3,590			4,019			4,159			4,512			4,979
Other assets		14,536			25,885			14,364			18,702			14,483
Total assets	$	1,417,660		$	1,477,690		$	1,480,058		$	1,487,384		$	1,505,454

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,199,412		$	1,252,273		$	1,259,286		$	1,261,623		$	1,275,828
Borrowings		20,000			25,000			25,000			25,000			25,000
Subordinated notes, net of unamortized issuance costs		18,726			18,715			18,705			19,678			19,667
Other liabilities		20,414			24,224			21,036			25,700			31,204
Total liabilities		1,258,552			1,320,212			1,324,027			1,332,001			1,351,699
Stockholders’ equity		159,108			157,478			156,031			155,383			153,755
Total liabilities and stockholders’ equity	$	1,417,660		$	1,477,690		$	1,480,058		$	1,487,384		$	1,505,454

⁽¹⁾	Annualized

⁽²⁾	Calculated on a tax equivalent basis (“TEB”) assuming a federal income tax rate of 21% and an average state income tax rate of 9.5%.
⁽³⁾	The efficiency ratio represents noninterest expense, divided by the sum of net interest income and noninterest income.

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2024									2023
	IIIQ			IIQ			IQ			IVQ			IIIQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	16,886		$	17,655		$	17,345		$	16,923		$	16,894
Total interest expense		5,225			5,079			4,818			4,491			3,940
Net interest income		11,661			12,576			12,527			12,432			12,954
Provision for (recovery of) credit losses		485			(122	)		12			317			136
Net interest income after provision for (recovery of) credit losses		11,176			12,698			12,515			12,115			12,818
Noninterest income		1,482			1,276			1,461			1,625			1,240
Noninterest expense		10,084			11,135			11,766			10,879			10,790
Income before income tax		2,574			2,839			2,210			2,861			3,268
Income tax expense		581			705			500			782			899
Net income	$	1,993		$	2,134		$	1,710		$	2,079		$	2,369
Basic and diluted earnings per common share	$	0.16		$	0.17		$	0.14		$	0.17		$	0.19

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	915		$	834		$	809		$	836		$	836
Loan servicing fees		97			97			156			164			98
Trust insurance commissions and annuities income		405			349			450			347			290
Loss on sale of premises and equipment		(20	)		(9	)		(75	)		—			—
Valuation adjustment on bank premises held-for-sale		—			—			—			(17	)		—
Loss on bank-owned life insurance		(14	)		(91	)		(87	)		(87	)		(88	)
Gain on repurchase of Subordinated notes		—			—			107			—			—
Other		99			96			101			382			104
Total noninterest income	$	1,482		$	1,276		$	1,461		$	1,625		$	1,240

Noninterest Expense
Compensation and benefits	$	5,441		$	5,943		$	6,052		$	5,679		$	5,369
Office occupancy and equipment		1,532			1,861			2,241			1,937			2,046
Advertising and public relations		117			112			90			139			171
Information technology		971			1,049			1,002			974			944
Professional fees		299			382			454			292			366
Supplies, telephone, and postage		281			292			286			289			311
FDIC insurance premiums		156			144			161			207			222
Other		1,287			1,352			1,480			1,362			1,361
Total noninterest expense	$	10,084		$	11,135		$	11,766		$	10,879		$	10,790

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2024									2023
	IIIQ			IIQ			IQ			IVQ			IIIQ
LOANS
One–to–four family residential real estate	$	15,634		$	17,707		$	18,247		$	18,945		$	19,233
Multi-family residential real estate		524,340			527,542			526,087			527,460			528,251
Nonresidential real estate		109,799			109,635			110,319			118,016			117,641
Commercial loans and leases		280,218			339,216			360,328			393,321			447,687
Consumer		1,847			1,787			1,248			1,364			1,351
		931,838			995,887			1,016,229			1,059,106			1,114,163
Allowance for credit losses		(7,899	)		(8,142	)		(8,249	)		(8,345	)		(8,559	)
Loans, net	$	923,939		$	987,745		$	1,007,980		$	1,050,761		$	1,105,604

LOAN ORIGINATIONS ⁽¹⁾
One–to–four family residential real estate	$	149		$	268		$	173		$	758		$	137
Multi-family residential real estate		4,837			14,177			5,561			6,226			5,902
Nonresidential real estate		2,658			34			—			3,183			834
Commercial loans		149,449			171,430			158,172			145,930			172,081
Equipment finance		8,068			6,207			3,427			8,141			14,442
Consumer		722			1,184			471			617			514
	$	165,883		$	193,300		$	167,804		$	164,855		$	193,910
Weighted average interest rate		8.26	%		8.76	%		9.04	%		9.09	%		9.11	%

LOAN PAYMENTS and PAYOFFS (2)
One–to–four family residential real estate	$	2,280		$	823		$	852		$	1,049		$	1,409
Multi-family residential real estate		8,094			12,387			6,931			7,336			19,784
Nonresidential real estate		2,619			711			7,684			3,278			3,253
Commercial loans		171,276			165,347			161,429			148,964			176,493
Equipment finance		44,315			33,140			34,669			55,433			56,844
Consumer		722			682			612			565			529
	$	229,307		$	213,090		$	212,177		$	216,625		$	258,312
Weighted average interest rate		7.69	%		8.16	%		8.25	%		7.85	%		7.86	%

⁽¹⁾	Loan originations include purchased loans, draws on revolving lines of credit and exclude loan renewals.

⁽²⁾	Loan payments and payoffs exclude loan renewals.

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2024									2023
	IIIQ			IIQ			IQ			IVQ			IIIQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate	$	34		$	39		$	34		$	37		$	40
Multi–family residential real estate		1,458			—			—			—			—
Nonresidential real estate		393			380			—			—			—
Equipment finance		20,446			20,395			20,475			21,294			23,468
		22,331			20,814			20,509			21,331			23,508

Loans past due over 90 days still accruing		—			—			—			1,007			6,245

Foreclosed assets, net
Other real estate owned		—			—			—			405			468
Other foreclosed assets		1,966			1,898			2,332			2,372			434
		1,966			1,898			2,332			2,777			902

Nonperforming assets	$	24,297		$	22,712		$	22,841		$	25,115		$	30,655

Asset Quality Ratios
Nonperforming assets to total assets		1.71	%		1.54	%		1.54	%		1.69	%		2.04	%
Nonperforming loans to total loans ⁽¹⁾		2.40			2.09			2.02			2.11			2.67
Nonperforming commercial-related loans to total commercial-related loans ⁽²⁾		2.44			2.13			2.05			2.15			2.72
Nonperforming residential and consumer loans to total residential and consumer loans		0.19			0.20			0.17			0.18			0.19
Allowance for credit losses to nonperforming loans		35.37			39.12			40.22			37.36			28.77

Concentrations of Credit
Commercial real estate for FFIEC concentration limits	$	616,985		$	621,628		$	620,694		$	624,575		$	624,469
% FFIEC total capital		361.51	%		359.51	%		364.28	%		370.83	%		363.55	%

Multi–family mortgage loans - 50% risk based capital qualified (included above)	$	253,491		$	269,868		$	297,958		$	315,179		$	248,128
% FFIEC total capital		148.53	%		156.07	%		174.87	%		187.13	%		144.45	%

⁽¹⁾	Nonperforming loans include nonaccrual loans and loans past due 90 days and still accruing.

⁽²⁾	Commercial-related loans include multi-family mortgage, nonresidential real estate, and commercial loans and leases.

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2024									2023
	IIIQ			IIQ			IQ			IVQ			IIIQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate	$	164		$	167		$	204		$	272		$	282
Multi–family residential real estate		686			1,421			—			—			—
Nonresidential real estate		449			457			465			—			—
Commercial loans and leases		4,700			3,154			3,606			4,056			5,685
Consumer		3			3			5			3			3
	$	6,002		$	5,202		$	4,280		$	4,331		$	5,970

ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	8,142		$	8,249		$	8,345		$	8,559		$	9,226
Charge–offs:
One-to-four family residential real estate		—			—			—			(1	)		—
Commercial loans and leases		(731	)		(10	)		(158	)		(570	)		(889	)
Consumer		(12	)		(12	)		(13	)		(9	)		(14	)
		(743	)		(22	)		(171	)		(580	)		(903	)
Recoveries:
One-to-four family residential real estate		22			2			3			1			32
Multi-family residential real estate		6			4			6			5			4
Commercial loans and leases		—			7			5			50			20
		28			13			14			56			56

Net charge–offs		(715	)		(9	)		(157	)		(524	)		(847	)
Provision for (recovery of) credit losses - loans		472			(98	)		61			310			180
Ending balance	$	7,899		$	8,142		$	8,249		$	8,345		$	8,559

Allowance for credit losses to total loans		0.85	%		0.82	%		0.81	%		0.79	%		0.77	%
Net charge–offs ratio⁽¹⁾		(0.30	)		—			(0.06	)		(0.19	)		(0.30	)

⁽¹⁾	Annualized

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2024									2023
	IIIQ			IIQ			IQ			IVQ			IIIQ
DEPOSITS
Noninterest–bearing demand	$	226,882		$	262,585		$	256,698		$	260,851		$	258,318
Interest–bearing NOW accounts		276,551			287,668			297,010			306,548			326,874
Money market accounts		306,679			311,276			309,695			297,074			291,154
Savings deposits		160,815			167,250			171,521			174,759			178,318
Certificates of deposit - retail		228,485			223,494			224,362			222,391			220,915
Certificates of deposit - wholesale		—			—			—			—			249
	$	1,199,412		$	1,252,273		$	1,259,286		$	1,261,623		$	1,275,828

SELECTED AVERAGE BALANCES
Total average assets	$	1,430,931		$	1,470,076		$	1,484,332		$	1,492,759		$	1,511,422
Total average interest–earning assets		1,359,833			1,399,280			1,415,175			1,425,504			1,444,259
Average loans		964,827			1,010,123			1,031,256			1,088,172			1,141,788
Average securities		252,735			242,591			186,339			161,772			167,046
Average stock in FHLB & FRB		7,490			7,490			7,490			7,490			7,490
Average other interest–earning assets		134,781			139,076			190,090			168,070			127,935
Total average interest–bearing liabilities		1,020,434			1,040,842			1,041,381			1,046,249			1,055,874
Average interest–bearing deposits		977,529			997,132			996,741			1,001,576			1,011,212
Average borrowings and Subordinated notes		42,905			43,710			44,640			44,673			44,662
Average stockholders’ equity		158,540			156,785			156,115			154,927			153,796

SELECTED YIELDS AND COST OF FUNDS ⁽¹⁾
Total average interest–earning assets		4.94	%		5.07	%		4.93	%		4.71	%		4.64	%
Average loans		5.07			5.32			5.21			4.99			4.96
Average securities (TEB)⁽²⁾		4.45			4.09			2.96			2.12			1.95
Average other interest–earning assets		5.46			5.51			5.51			5.48			5.40
Total average interest–bearing liabilities		2.04			1.96			1.86			1.70			1.48
Average interest–bearing deposits		1.94			1.87			1.75			1.59			1.36
Average cost of total deposits		1.57			1.49			1.39			1.26			1.07
Average cost of retail and commercial deposits		1.94			1.87			1.75			1.59			1.36
Average cost of wholesale deposits, borrowings and Subordinated notes		4.18			4.19			4.34			4.18			4.18
Average cost of funds		1.66			1.58			1.49			1.36			1.18
Net interest rate spread		2.90			3.11			3.07			3.01			3.16
Net interest margin (TEB) ⁽²⁾		3.47			3.67			3.59			3.48			3.57

⁽¹⁾	Annualized
⁽²⁾	Calculated on a tax equivalent basis assuming a federal income tax rate of 21% and an average state income tax rate of 9.5%.

Page 6

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2024									2023
	IIIQ			IIQ			IQ			IVQ			IIIQ
CAPITAL RATIOS
BankFinancial Corporation ⁽¹⁾
Equity to total assets (end of period)		11.22	%		10.66	%		10.54	%		10.45	%		10.21	%
Risk–based total capital ratio		21.56			20.52			20.73			20.70			19.13
Common Tier 1 (CET1)		18.53			17.60			17.75			17.66			16.30
Risk–based tier 1 capital ratio		18.53			17.60			17.75			17.66			16.30
Tier 1 leverage ratio		11.11			10.75			10.59			10.54			10.38
Tier 1 capital	$	158,778		$	157,984		$	157,062		$	157,246		$	156,780
BankFinancial, NA ⁽²⁾
Risk–based total capital ratio		19.96	%		19.31	%		19.30	%		18.96	%		17.90	%
Common Tier 1 (CET1)		19.11			18.46			18.43			18.13			17.10
Risk–based tier 1 capital ratio		19.11			18.46			18.43			18.13			17.10
Tier 1 leverage ratio		11.48			11.32			11.03			10.85			10.93
Tier 1 capital	$	163,355		$	165,368		$	162,715		$	161,037		$	164,172

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	12.18		$	10.29		$	10.50		$	10.26		$	8.62
High		12.56			10.70			11.12			10.76			9.11
Low		10.01			9.60			9.65			8.31			7.98
Common shares outstanding		12,460,678			12,460,678			12,460,678			12,475,881			12,547,390
Book value per share	$	12.77		$	12.64		$	12.52		$	12.45		$	12.25
Cash dividends declared on common stock	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Dividend payout ratio		62.52	%		58.39	%		72.94	%		60.33	%		53.16	%
Stock repurchases	$	—		$	—		$	156		$	676		$	471
Stock repurchases – shares		—			—			15,203			71,509			53,088

EARNINGS PER SHARE COMPUTATIONS
Net income	$	1,993		$	2,134		$	1,710		$	2,079		$	2,369
Weighted average basic and dilutive common shares outstanding		12,460,678			12,460,678			12,468,052			12,526,673			12,578,494
Basic and diluted earnings per common share	$	0.16		$	0.17		$	0.14		$	0.17		$	0.19

⁽¹⁾	As a small bank holding company, the Company is exempt from the Federal Reserve Board's risk-based capital and leverage rules. BankFinancial Corporation capital data is included for informational purposes only.

⁽²⁾

As a qualifying community bank pursuant to Section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, the Bank elected to adopt the Community Bank Leverage Ratio requirement in 2020. The Community Bank Leverage Ratio is equal to the Bank's Tier 1 Leverage Ratio. Other BankFinancial, NA capital data is included for informational purposes only.

Page 7

Document And Entity Information	Nov. 05, 2024
Document Information [Line Items]
Entity, Registrant Name	BANKFINANCIAL CORPORATION
Document, Type	8-K
Entity, Incorporation, State or Country Code	MD
Entity, File Number	0-51331
Entity, Tax Identification Number	75-3199276
Entity, Address, Address Line One	60 North Frontage Road
Entity, Address, City or Town	Burr Ridge
Entity, Address, State or Province	IL
Entity, Address, Postal Zip Code	60527
City Area Code	800
Local Phone Number	894-6900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	BFIN
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001303942