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): July 31, 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 June 30, 2024.

SECOND QUARTER 2024 OVERVIEW

We reported net income for the three months ended June 30, 2024 of $2.1 million, or $0.17 per common share. At June 30, 2024, we had total assets of $1.478 billion, total loans of $987.7 million, total deposits of $1.252 billion and stockholders' equity of $157 million.

In the second quarter of 2024, interest income increased by $310,000, primarily due to our investment of scheduled loan and lease portfolio payments into short-term liquidity investments, multi-family residential loans and commercial finance lines of credit. Interest expense increased by $261,000, primarily due to higher interest rates paid on deposit accounts, as certain depositors sought to benefit from increases in short-term market rates. Our tax-equivalent net interest margin increased to 3.67% from 3.59%.

Noninterest income decreased by $185,000, primarily due to the reduction of seasonal captive insurance premium income and the absence of Subordinated Notes repurchases in the second quarter of 2024. This decrease was partially offset by increases in deposit fee income and trust department income.

Noninterest expense decreased by $631,000 due in part to decreases in compensation and benefits expense, office occupancy and equipment expenses. Nonperforming assets expenses decreased by $332,000, partially offset by a $218,000 loss recorded on disposition of other foreclosed assets.

Cash & Cash Equivalent Assets

For the quarter ended June 30, 2024, cash and cash equivalent assets represented 10% of total assets, compared to 9% of total assets at March 31, 2024.

Investment Securities Portfolio

For the quarter ended June 30, 2024, total investment securities decreased by $16.6 million due to $27.4 million in 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 1.24 years as of June 30, 2024, with an after-tax unrealized loss of $1.7 million or 1.1% of Tier 1 capital. We reinvested $10.0 million in new U.S. government-sponsored agency securities to improve our interest rate risk balance by reducing our exposure to declining interest rates over a 2-year time horizon.

Loan Portfolio

Our loan portfolio declined by $20.2 million in the second quarter of 2024. Multi-family residential loans increased by $1.5 million (0.3%) primarily due to higher loan originations. Commercial finance balances increased by $6.0 million (6.9%) primarily due to higher line of credit utilization. Equipment finance balances declined by $27.1 million (9.9%) primarily due to scheduled repayments, inclusive of $13.7 million of scheduled payments on federal, state and local government equipment finance transactions, partially offset by higher originations of corporate equipment finance transactions. The average yield on our loan portfolio increased to 5.32% due to the scheduled repayments of lower-yielding equipment finance transactions during the quarter.

Asset Quality

The ratio of nonperforming assets to total assets remained at 1.54% at June 30, 2024 and March 31, 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 0.26% at June 30, 2024. Past due trends improved, and nonperforming asset resolution activity continued to accelerate during the second quarter of 2024.

Our allowance for credit losses increased to 0.82% of total loans at June 30, 2024, compared to 0.81% at March 31, 2024.

Deposit Portfolio

Total deposits decreased by $7.0 million (0.6%) primarily due to balance volatility involving certain higher-balance retail and commercial depositors, including public-funds depositors. Our cost of total retail and commercial deposits increased to 1.87% during the second quarter of 2024 from 1.75% at March 31, 2024. Core deposits represented 82% of total deposits, with noninterest-bearing demand deposits representing 21% of total deposits at June 30, 2024. Total commercial deposits were 22% of total deposits at June 30, 2024 and March 31, 2024. FDIC-insured deposits were 83.43% of total deposits and collateralized public funds deposits were 1.57% of total deposits as of June 30, 2024.

Capital Adequacy

The Company’s capital position remained strong, with a Tier 1 leverage ratio of 10.75% at June 30, 2024. The book value of the Company’s common shares increased to $12.64 at June 30, 2024 from $12.52 at March 31, 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.

SECOND HALF 2024 OUTLOOK

Cash & Cash Equivalent Assets

For the second half of 2024, we expect cash and cash equivalent assets to be between 8% and 12% of total assets.

Investment Securities Portfolio

For the second half 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, funding deposit withdrawals or repayments of Federal Home Loan Bank advances.

Loan Portfolio

Based on current loan origination pipelines, scheduled repayments and expected market conditions, we expect our loan portfolio to increase between 1% and 6% during the second half of 2024; however, increases in prepayment rates on multi-family residential real estate loans 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, to a lesser extent, multi-family residential and commercial 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 second half 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 increase by 0.10% during the second half of 2024.

Net Interest Income

For the second half 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 increase between 1% and 2% compared to the first half of 2024.

Noninterest Income

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

Noninterest Expense

For the second half of 2024, we expect noninterest expense to further decline between 3% and 6% compared to the first half of 2024 as we achieve additional operating efficiencies.

Item 8.01. Other Events.

On , the Company filed its Quarterly Report on Form 10-Q for the second quarter ended June 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:	July 31, 2024	By:	/s/ F. Morgan Gasior
			F. Morgan Gasior
			Chairman of the Board, Chief Executive Officer and President

Exhibit 99.1

BANKFINANCIAL CORPORATION

Second 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
	IIQ			IQ			IVQ			IIIQ			IIQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total assets) ⁽¹⁾		0.58	%		0.46	%		0.56	%		0.63	%		0.61	%
Return on equity (ratio of net income to average equity) ⁽¹⁾		5.44			4.38			5.37			6.16			6.02
Net interest rate spread ⁽¹⁾		3.11			3.07			3.01			3.16			3.23
Net interest margin (TEB) ^{(1) (2)}		3.67			3.59			3.48			3.57			3.58
Efficiency ratio⁽³⁾		80.39			84.11			77.39			76.02			79.11
Noninterest expense to average total assets ⁽¹⁾		3.03			3.17			2.92			2.86			2.94
Average interest–earning assets to average interest–bearing liabilities		134.44			135.89			136.25			136.78			136.86
Number of full service offices		18			18			18			18			18
Employees (full time equivalents)		206			217			205			200			198

SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	19,505		$	18,533		$	19,781		$	19,691		$	20,401
Interest-bearing deposits in other financial institutions		132,273			113,907			158,703			151,870			94,930
Interest-bearing time deposits in other financial institutions		34,913			30,748			29,513			2,725			2,977
Securities, at fair value		222,906			239,549			153,203			155,700			166,670
Loans receivable, net		987,745			1,007,980			1,050,761			1,105,604			1,170,767
Foreclosed assets, net		1,898			2,332			2,777			902			950
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			540
Premises and equipment, net		22,765			22,614			22,950			22,914			22,957
Bank-owned life insurance		18,291			18,382			18,469			18,556			18,644
Deferred taxes		4,019			4,159			4,512			4,979			5,476
Other assets		25,885			14,364			18,702			14,483			14,894
Total assets	$	1,477,690		$	1,480,058		$	1,487,384		$	1,505,454		$	1,526,696

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,252,273		$	1,259,286		$	1,261,623		$	1,275,828		$	1,303,720
Borrowings		25,000			25,000			25,000			25,000			25,000
Subordinated notes, net of unamortized issuance costs		18,715			18,705			19,678			19,667			19,656
Other liabilities		24,224			21,036			25,700			31,204			26,017
Total liabilities		1,320,212			1,324,027			1,332,001			1,351,699			1,374,393
Stockholders’ equity		157,478			156,031			155,383			153,755			152,303
Total liabilities and stockholders’ equity	$	1,477,690		$	1,480,058		$	1,487,384		$	1,505,454		$	1,526,696

⁽¹⁾	Annualized

⁽²⁾	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.

Page 1

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

	2024						2023
	IIQ			IQ			IVQ			IIIQ			IIQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	17,655		$	17,345		$	16,923		$	16,894		$	16,178
Total interest expense		5,079			4,818			4,491			3,940			3,235
Net interest income		12,576			12,527			12,432			12,954			12,943
Provision for (recovery of) credit losses		(122	)		12			317			136			(188	)
Net interest income after provision for (recovery of) credit losses		12,698			12,515			12,115			12,818			13,131
Noninterest income		1,276			1,461			1,625			1,240			1,239
Noninterest expense		11,135			11,766			10,879			10,790			11,220
Income before income tax		2,839			2,210			2,861			3,268			3,150
Income tax expense		705			500			782			899			838
Net income	$	2,134		$	1,710		$	2,079		$	2,369		$	2,312
Basic and diluted earnings per common share	$	0.17		$	0.14		$	0.17		$	0.19		$	0.18

NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	834		$	809		$	836		$	836		$	830
Loan servicing fees		97			156			164			98			141
Trust insurance commissions and annuities income		349			450			347			290			276
(Loss) gain on sale of premises and equipment		(9	)		(75	)		—			—			13
Valuation adjustment on bank premises held-for-sale		—			—			(17	)		—			(32	)
Loss on bank-owned life insurance		(91	)		(87	)		(87	)		(88	)		(87	)
Gain on repurchase of Subordinated notes		—			107			—			—			—
Other		96			101			382			104			98
Total noninterest income	$	1,276		$	1,461		$	1,625		$	1,240		$	1,239

Noninterest Expense
Compensation and benefits	$	5,943		$	6,052		$	5,679		$	5,369		$	5,629
Office occupancy and equipment		1,861			2,241			1,937			2,046			2,031
Advertising and public relations		112			90			139			171			262
Information technology		1,049			1,002			974			944			965
Professional fees		382			454			292			366			355
Supplies, telephone, and postage		292			286			289			311			295
FDIC insurance premiums		144			161			207			222			282
Other		1,352			1,480			1,362			1,361			1,401
Total noninterest expense	$	11,135		$	11,766		$	10,879		$	10,790		$	11,220

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

	2024						2023
	IIQ			IQ			IVQ			IIIQ			IIQ
LOANS
One–to–four family residential real estate	$	17,707		$	18,247		$	18,945		$	19,233		$	20,448
Multi-family residential real estate		527,542			526,087			527,460			528,251			542,165
Nonresidential real estate		109,635			110,319			118,016			117,641			120,505
Commercial loans and leases		339,216			360,328			393,321			447,687			495,520
Consumer		1,787			1,248			1,364			1,351			1,355
		995,887			1,016,229			1,059,106			1,114,163			1,179,993
Allowance for credit losses		(8,142	)		(8,249	)		(8,345	)		(8,559	)		(9,226	)
Loans, net	$	987,745		$	1,007,980		$	1,050,761		$	1,105,604		$	1,170,767

LOAN ORIGINATIONS ⁽¹⁾
One–to–four family residential real estate	$	268		$	173		$	758		$	137		$	128
Multi-family residential real estate		14,177			5,561			6,226			5,902			6,686
Nonresidential real estate		34			—			3,183			834			200
Commercial loans		171,430			158,172			145,930			172,081			157,704
Equipment finance		6,207			3,427			8,141			14,442			7,290
Consumer		1,184			471			617			514			539
	$	193,300		$	167,804		$	164,855		$	193,910		$	172,547
Weighted average interest rate		8.76	%		9.04	%		9.09	%		9.11	%		9.24	%

LOAN PAYMENTS and PAYOFFS (2)
One–to–four family residential real estate	$	823		$	852		$	1,049		$	1,409		$	1,139
Multi-family residential real estate		12,387			6,931			7,336			19,784			9,095
Nonresidential real estate		711			7,684			3,278			3,253			2,934
Commercial loans		165,347			161,429			148,964			176,493			169,402
Equipment finance		33,140			34,669			55,433			56,844			43,567
Consumer		682			612			565			529			675
	$	213,090		$	212,177		$	216,625		$	258,312		$	226,812
Weighted average interest rate		8.16	%		8.25	%		7.85	%		7.86	%		8.35	%

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

⁽²⁾	Loan payments and payoffs exclude loan renewals.

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

	2024						2023
	IIQ			IQ			IVQ			IIIQ			IIQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One–to–four family residential real estate	$	39		$	34		$	37		$	40		$	45
Multi–family residential real estate		—			—			—			—			148
Nonresidential real estate		380			—			—			—			—
Equipment finance		20,395			20,475			21,294			23,468			23,965
		20,814			20,509			21,331			23,508			24,158

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

Foreclosed assets, net
Other real estate owned		—			—			405			468			472
Other foreclosed assets		1,898			2,332			2,372			434			478
		1,898			2,332			2,777			902			950

Nonperforming assets	$	22,712		$	22,841		$	25,115		$	30,655		$	25,108

Asset Quality Ratios
Nonperforming assets to total assets		1.54	%		1.54	%		1.69	%		2.04	%		1.64	%
Nonperforming loans to total loans ⁽¹⁾		2.09			2.02			2.11			2.67			2.05
Nonperforming commercial-related loans to total commercial-related loans ⁽²⁾		2.13			2.05			2.15			2.72			2.08
Nonperforming residential and consumer loans to total residential and consumer loans		0.20			0.17			0.18			0.19			0.21
Allowance for credit losses to nonperforming loans		39.12			40.22			37.36			28.77			38.19

Concentrations of Credit
Commercial real estate for FFIEC concentration limits	$	621,628		$	620,694		$	624,575		$	624,469		$	641,022
% FFIEC total capital		359.51	%		364.28	%		370.83	%		363.55	%		372.44	%

Multi–family mortgage loans - 50% risk based capital qualified (included above)	$	269,868		$	297,958		$	315,179		$	248,128		$	175,902
% FFIEC total capital		156.07	%		174.87	%		187.13	%		144.45	%		102.20	%

⁽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.

Page 4

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

	2024						2023
	IIQ			IQ			IVQ			IIIQ			IIQ
SUBSTANDARD PERFORMING LOANS
One–to–four family residential real estate	$	167		$	204		$	272		$	282		$	272
Multi–family residential real estate		1,421			—			—			—			—
Nonresidential real estate		457			465			—			—			—
Commercial loans and leases		3,154			3,606			4,056			5,685			3,759
Consumer		3			5			3			3			5
	$	5,202		$	4,280		$	4,331		$	5,970		$	4,036

ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	8,249		$	8,345		$	8,559		$	9,226		$	10,032
Charge–offs:
One-to-four family residential real estate		—			—			(1	)		—			—
Commercial loans and leases		(10	)		(158	)		(570	)		(889	)		(638	)
Consumer		(12	)		(13	)		(9	)		(14	)		(7	)
		(22	)		(171	)		(580	)		(903	)		(645	)
Recoveries:
One-to-four family residential real estate		2			3			1			32			7
Multi-family residential real estate		4			6			5			4			6
Commercial loans and leases		7			5			50			20			6
		13			14			56			56			19

Net charge–offs		(9	)		(157	)		(524	)		(847	)		(626	)
Provision for (recovery of) credit losses - loans		(98	)		61			310			180			(180	)
Ending balance	$	8,142		$	8,249		$	8,345		$	8,559		$	9,226

Allowance for credit losses to total loans		0.82	%		0.81	%		0.79	%		0.77	%		0.78	%
Net charge–offs ratio⁽¹⁾		—			(0.06	)		(0.19	)		(0.30	)		(0.21	)

⁽¹⁾	Annualized

Page 5

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

	2024						2023
	IIQ			IQ			IVQ			IIIQ			IIQ
DEPOSITS
Noninterest–bearing demand	$	262,585		$	256,698		$	260,851		$	258,318		$	278,170
Interest–bearing NOW accounts		287,668			297,010			306,548			326,874			349,374
Money market accounts		311,276			309,695			297,074			291,154			271,194
Savings deposits		167,250			171,521			174,759			178,318			190,277
Certificates of deposit - retail		223,494			224,362			222,391			220,915			214,456
Certificates of deposit - wholesale		—			—			—			249			249
	$	1,252,273		$	1,259,286		$	1,261,623		$	1,275,828		$	1,303,720

SELECTED AVERAGE BALANCES
Total average assets	$	1,470,076		$	1,484,332		$	1,492,759		$	1,511,422		$	1,526,246
Total average interest–earning assets		1,399,280			1,415,175			1,425,504			1,444,259			1,459,369
Average loans		1,010,123			1,031,256			1,088,172			1,141,788			1,206,175
Average securities		242,591			186,339			161,772			167,046			173,350
Average stock in FHLB & FRB		7,490			7,490			7,490			7,490			7,490
Average other interest–earning assets		139,076			190,090			168,070			127,935			72,354
Total average interest–bearing liabilities		1,040,842			1,041,381			1,046,249			1,055,874			1,066,332
Average interest–bearing deposits		997,132			996,741			1,001,576			1,011,212			1,021,023
Average borrowings and Subordinated notes		43,710			44,640			44,673			44,662			45,309
Average stockholders’ equity		156,785			156,115			154,927			153,796			153,703

SELECTED YIELDS AND COST OF FUNDS ⁽¹⁾
Total average interest–earning assets		5.07	%		4.93	%		4.71	%		4.64	%		4.45	%
Average loans		5.32			5.21			4.99			4.96			4.77
Average securities (TEB)⁽²⁾		4.09			2.96			2.12			1.95			2.03
Average other interest–earning assets		5.51			5.51			5.48			5.40			5.09
Total average interest–bearing liabilities		1.96			1.86			1.70			1.48			1.22
Average interest–bearing deposits		1.87			1.75			1.59			1.36			1.08
Average cost of total deposits		1.49			1.39			1.26			1.07			0.85
Average cost of retail and commercial deposits		1.87			1.75			1.59			1.36			1.08
Average cost of wholesale deposits, borrowings and Subordinated notes		4.19			4.34			4.18			4.18			4.21
Average cost of funds		1.58			1.49			1.36			1.18			0.96
Net interest rate spread		3.11			3.07			3.01			3.16			3.23
Net interest margin (TEB) ⁽²⁾		3.67			3.59			3.48			3.57			3.58

⁽¹⁾	Annualized
⁽²⁾	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
	IIQ			IQ			IVQ			IIIQ			IIQ
CAPITAL RATIOS
BankFinancial Corporation ⁽¹⁾
Equity to total assets (end of period)		10.66	%		10.54	%		10.45	%		10.21	%		9.98	%
Risk–based total capital ratio		20.52			20.73			20.70			19.13			17.75
Common Tier 1 (CET1)		17.60			17.75			17.66			16.30			15.05
Risk–based tier 1 capital ratio		17.60			17.75			17.66			16.30			15.05
Tier 1 leverage ratio		10.75			10.59			10.54			10.38			10.23
Tier 1 capital	$	157,984		$	157,062		$	157,246		$	156,780		$	156,050
BankFinancial, NA ⁽²⁾
Risk–based total capital ratio		19.31	%		19.30	%		18.96	%		17.90	%		16.64	%
Common Tier 1 (CET1)		18.46			18.43			18.13			17.10			15.83
Risk–based tier 1 capital ratio		18.46			18.43			18.13			17.10			15.83
Tier 1 leverage ratio		11.32			11.03			10.85			10.93			10.80
Tier 1 capital	$	165,368		$	162,715		$	161,037		$	164,172		$	163,806

COMMON STOCK AND DIVIDENDS
Stock Prices:
Close	$	10.29		$	10.50		$	10.26		$	8.62		$	8.18
High		10.70			11.12			10.76			9.11			8.94
Low		9.60			9.65			8.31			7.98			7.17
Common shares outstanding		12,460,678			12,460,678			12,475,881			12,547,390			12,600,478
Book value per share	$	12.64		$	12.52		$	12.45		$	12.25		$	12.09
Cash dividends declared on common stock	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Dividend payout ratio		58.39	%		72.94	%		60.33	%		53.16	%		54.88	%
Stock repurchases	$	—		$	156		$	676		$	471		$	744
Stock repurchases – shares		—			15,203			71,509			53,088			93,515

EARNINGS PER SHARE COMPUTATIONS
Net income	$	2,134		$	1,710		$	2,079		$	2,369		$	2,312
Weighted average basic and dilutive common shares outstanding		12,460,678			12,468,052			12,526,673			12,578,494			12,667,129
Basic and diluted earnings per common share	$	0.17		$	0.14		$	0.17		$	0.19		$	0.18

⁽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	Jul. 31, 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