BankFinancial Corporation Reports Financial Results for 2020 and Will Host Conference Call and Webcast on Wednesday, February 3, 2021

BURR RIDGE, Ill., Feb. 01, 2021 (GLOBE NEWSWIRE) -- 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.