BankFinancial : First Quarter, 2023

BANKFINANCIAL CORPORATION

FIRST QUARTER 2023

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 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)

				2023										2022
				IQ						IVQ			IIIQ		IIQ			IQ
PERFORMANCE MEASUREMENTS
Return on assets (ratio of net income to average total
assets) (1)		0.68%				0.86%			0.79%			0.62%			0.30%
Return on equity (ratio of net income to average equity) (1)				6.96						9.01				8.31				6.64				3.24
Net interest rate spread (1)		3.41						3.39				3.42				3.00				2.66
Net interest margin (1)				3.66						3.59				3.52				3.07				2.73
Efficiency ratio (2)		74.51						65.12				69.70				73.01				84.20
Noninterest expense to average total assets (1)				2.65						2.50				2.60				2.47				2.47
Average interest-earning assets to average interest-bearing
liabilities		135.85						137.62				137.90				138.10				139.03
Number of full service offices				18						20				20				19				19
Employees (full time equivalents)		202						203				199				200				206
SUMMARY STATEMENT OF FINANCIAL CONDITION
ASSETS
Cash and due from other financial institutions	$	19,963					$	12,046		$	11,753			$	10,655		$	9,722
Interest-bearing deposits in other financial institutions				57,042						54,725				204,378				259,816				391,280
Securities, at fair value		170,239						210,338				199,339				158,951				132,634
Loans receivable, net				1,225,288						1,226,743				1,141,799				1,142,743				1,055,069
Foreclosed assets, net		1,393						476				524				842				968
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		1,246						-			-				-			-
Premises and equipment, net				22,955						24,956				24,949				25,103				24,939
Bank-owned life insurance		18,731						18,815				18,879				18,893				19,157
Deferred taxes				5,395						5,480				5,428				4,517				3,989
Other assets		14,368						14,373				14,957				16,132				15,143
Total assets			$	1,544,110					$	1,575,442			$	1,629,496			$	1,645,142			$	1,660,391
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	$	1,315,214					$	1,374,934		$	1,425,258			$	1,444,750		$	1,461,605
Borrowings				35,000						-				-				-				5,000
Subordinated notes, net of unamortized issuance costs		19,645						19,634				19,623				19,612				19,601
Other liabilities				21,892						29,203				33,545				26,650				20,290
Total liabilities		1,391,751						1,423,771				1,478,426				1,491,012				1,506,496
Stockholders' equity				152,359						151,671				151,070				154,130				153,895
Total liabilities and stockholders' equity		$	1,544,110					$	1,575,442			$	1,629,496			$	1,645,142			$	1,660,391

1. Annualized
2. 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)

			2023								2022
			IQ				IVQ			IIIQ				IIQ				IQ
SUMMARY STATEMENT OF OPERATIONS
Total interest income	$	16,160			$	16,064		$	14,930		$	12,884	$	11,418
Total interest expense			2,660				2,076				1,008					754				643
Net interest income			13,500				13,988				13,922					12,130				10,775
Provision for credit losses			48				743				350					459				276
Net interest income after provision for credit losses		13,452				13,245				13,572					11,671				10,499
Noninterest income			313				1,406				1,287					1,839				1,444
Noninterest expense		10,292				10,039				10,601					10,199				10,289
Income before income tax			3,473				4,612				4,258					3,311				1,654
Income tax expense		840				1,174				1,037					744				386
Net income		$	2,633			$	3,438			$	3,221				$	2,567			$	1,268
Basic and diluted earnings per common share	$	0.21			$	0.27			$	0.25				$	0.19			$	0.10
NONINTEREST INCOME AND EXPENSE
Noninterest Income
Deposit service charges and fees	$	816			$	835		$	829		$	826	$	781
Loan servicing fees			129				240				59					190				101
Trust insurance commissions and annuities income		367				266				287					262				338
(Loss) earnings on bank-owned life insurance			(84	)			(64	)			(14	)				11				28
Bank-owned life insurance death benefit		-		-			-				446				-
Losses on sales of securities			(454	)			-				-					-				-
Valuation adjustment on bank premises held-for-sale		(553)			-			-				-				-
Other			92				129				126					104				196
Total noninterest income	$	313			$	1,406			$	1,287				$	1,839			$	1,444
Noninterest Expense
Compensation and benefits		$	5,555			$	5,366			$	5,241				$	5,489			$	5,480
Office occupancy and equipment		2,038				1,944				1,970					1,933				2,134
Advertising and public relations			190				202				138					208				142
Information technology		849				926				894					895				851
Professional fees			317				262				245					412				373
Supplies, telephone, and postage		359				342				342					362				347
FDIC insurance premiums			154				111				134					106				116
Other		830				886				1,637					794				846
Total noninterest expense		$	10,292			$	10,039			$	10,601				$	10,199			$	10,289

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BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

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

			2023								2022
			IQ				IVQ			IIIQ		IIQ			IQ
LOANS (1)
One-to-four family residential real estate	$	21,475			$	23,133		$	24,523			$	26,290		$	28,268
Multi-family mortgage (2)			544,673				537,394				482,462				486,208				435,835
Nonresidential real estate		123,360				119,705				115,770				115,910				99,692
Commercial loans and leases			544,216				553,056				524,067				519,963				496,488
Consumer		1,596				1,584				2,363				1,574				1,572
			1,235,320				1,234,872				1,149,185				1,149,945				1,061,855
Allowance for credit losses		(10,032)		(8,129)			(7,386)			(7,202)			(6,786)
Loans, net		$	1,225,288			$	1,226,743			$	1,141,799			$	1,142,743			$	1,055,069
LOAN ORIGINATIONS (3)
One-to-four family residential real estate	$	173			$	215		$	592			$	268		$	348
Multi-family mortgage			17,097				67,888				44,690				75,679				35,661
Nonresidential real estate		5,436				7,694				8,947				21,254				5,837
Commercial loans			181,227				179,421				168,438				183,464				184,290
Equipment finance		24,623				90,157				53,982				90,267				30,821
Consumer			565				544				544				563				496
		$	229,121			$	345,919			$	277,193			$	371,495			$	257,453
Weighted average interest rate			8.67		%		6.88	%			6.26		%		4.87	%			4.56	%
LOAN PAYMENTS and PAYOFFS (4)
One-to-four family residential real estate	$	1,826			$	1,525		$	2,296			$	2,233		$	2,324
Multi-family mortgage			10,151				13,465				48,158				26,156				25,598
Nonresidential real estate		1,967				3,708				9,460				5,018				8,823
Commercial loans			168,461				177,205				160,502				197,912				170,543
Equipment finance		45,250				64,144				56,779				51,671				38,701
Consumer			615				541				525				557				587
		$	228,270			$	260,588		$	277,720			$	283,547		$	246,576
Weighted average interest rate			8.20		%		6.97	%			5.88		%		4.94	%			4.42	%

1. Net deferred loan origination costs are included in loans receivable by class.
2. Multi-familymortgage includes a single construction loan at March 31, 2023, December 31, 2022, September 30, 2022 and June 30, 2022.
3. Loan originations include purchased loans, draws on revolving lines of credit and exclude loan renewals.
4. 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)

			2023								2022
			IQ			IVQ				IIIQ			IIQ				IQ
CREDIT QUALITY:
Nonperforming Assets:
Nonaccrual loans:
One-to-four family residential real estate	$	55		$	92		$	715		$	323		$	330
Commercial loans and leases			8,807			1,310					525				610					101
Consumer		-		5					-			-				-
			8,862			1,407					1,240				933					431
Loans past due over 90 days still accruing			-			238					415				753					1,531
Foreclosed assets, net
Other real estate owned		472			472					243				274					274
Other foreclosed assets			921			4					281				568					694
			1,393			476					524				842					968
Nonperforming assets	$	10,255		$	2,121		$	2,179		$	2,528		$	2,930
Asset Quality Ratios
Nonperforming assets to total assets			0.66	%		0.13	%				0.13	%			0.15	%				0.18	%
Nonperforming loans to total loans (1)		0.72			0.13					0.14				0.15					0.18
Nonperforming commercial-related loans to total
commercial-related loans (2)			0.73			0.13					0.08				0.12					0.16
Nonperforming residential and consumer loans to total
residential and consumer loans		0.24			0.39					2.66				1.16					1.11
Allowance for credit losses to nonperforming loans			113.20			494.16					446.28				427.16					345.87
Concentrations of Credit
Commercial real estate for FFIEC concentration limits	$	645,768		$	634,482		$	575,526		$	579,455		$	514,434
% FFIEC total capital			374.63	%		365.95	%				329.27	%			331.26	%				295.56	%
Multi-family mortgage loans - 50% risk based capital qualified
(included above)		$	122,213		$	101,052			$	103,745			$	121,717			$	153,558
% FFIEC total capital		70.90%		58.28%				59.35%			69.58%				88.22	%

1. Nonperforming loans include nonaccrual loans and loans past due 90 days and still accruing.
2. Commercial-relatedloans include multi-family mortgage, nonresidential real estate, and commercial loans and leases.

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