BankFinancial Corporation Releases 2021 Financial Results and Will Host Conference Call and… | News
BURR RIDGE, Ill., Jan. 31, 2022 (GLOBE NEWSWIRE) — BankFinancial Corporation (Nasdaq – BFIN) (the “Company”) announced today that the Company posted net income of $7.4 million and a basic and diluted earnings per common share of $0.53 for the year ended December 31, 2021. The Company recorded net earnings of $2.4 million and basic and diluted earnings per common share of 0. $18 for the fourth quarter of 2021.
For the year ended 2021, total loans increased by $41.6 million (4.2%) to $1.044 billion. Total commercial loans and leases increased by $84.5 million (20.9%) to $489.5 million, reflecting our growing emphasis on commercial and industrial loans. Total multi-family mortgages and non-residential real estate loans decreased $31.6 million (5.6%) to $529.3 million due to continued high portfolio prepayment rates. Total other loans decreased by $11.7 million (26.9%) due to the discontinuation of our residential mortgages and continued prepayments of existing residential mortgages.
The Company’s asset quality remained stable in 2021. The ratio of non-performing loans to total loans was 0.07% and the ratio of non-performing assets to total assets was 0.09% as of December 31, 2021 Non-performing commercial loans accounted for 0.04% of total commercial loans. related loans as of December 31, 2021. Our allowance for loan losses decreased to 0.64% of total loans as of December 31, 2021, from 0.77% as of December 31, 2020, primarily due to the reduction in reserve increases for loan losses that were incurred in the early stages of the global COVID-19 pandemic.
Total deposits increased by $94.9 million (6.8%) due to continued strong liquidity from our retail and commercial depositors. Core deposits represented 86.1% of total deposits, with demand deposits representing 23.0% of total deposits.
The Company’s capital position remained strong, with a Tier 1 leverage ratio of 9.32% as of December 31, 2021. Throughout 2021, the Company maintained its quarterly dividend rate at $0.10 per ordinary share. The Company repurchased 1,541,280 common shares during the year ended December 31, 2021, representing 10.4% of the common shares outstanding as of December 31, 2020. The Company’s book value per share increased by 1 .6% in 2021 to reach $11.90 per share as of December 31, 2020. 31, 2021.
For the year ended December 31, 2021, net interest income decreased by $2.1 million (4.6%) due to lower average loan yields during the year and the decrease in the average loan portfolio balance in 2021 compared to 2020. Non-interest income increased by $323,000 (6.0%) due to higher loan fee income and higher fees. trust fee income related to the growth of our commercial loans and trust assets under management. Non-interest expense increased by $2.5 million (6.5%) primarily due to additional personnel in commercial loan and lease origination, risk management, treasury and fiduciary service.
For the fourth quarter of 2021, net interest income increased by $357,000 due to higher investment securities interest income and loan prepayment income, offsetting a slight decrease in outstanding average loans and a lower return on origination of loans compared to the third quarter of 2021. The Company increased its investment securities portfolio by $71.0 million due to new investments in U.S. Treasury securities at significantly higher market returns compared to prior periods in 2021. Non-interest income increased by $257,000 due to seasonally higher lending and deposit service fee income. Non-interest expense increased by $183,000 primarily due to other expenses related to deposit account write-off activity.
F. Morgan Gasior, the company’s Chairman and Chief Executive Officer, said, “The company ended 2021 in a strong financial position, with excellent asset quality and greater loan portfolio diversity linked to our growth initiatives. commercial loans. Our financial results for 2021 reflect in part the continued impact of borrower and depositor liquidity and changes in economic activity related to the pandemic – but also our decision to invest in the resources necessary to become a lending franchise state-of-the-art commercial and commercial deposits. . We were pleased with our significant growth in loan origination activity, but were disappointed by the continued high level of portfolio prepayments and low commercial line utilization in 2021. The origination of equipment finance, trade finance, treasury and trust services in 2021 will provide additional positive operating leverage in 2022, particularly if market returns, liquidity and economic efficiency return to levels of before the pandemic. We remain committed to delivering strong financial returns and contributions to our shareholders and communities. »
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 via the EDGAR database on the SEC website, www.sec.gov. The Quarterly Financial and Statistical Supplement includes performance data and comparative GAAP and non-GAAP financial measures for the past five quarters.
BankFinancial management will discuss fourth quarter 2021 results during a conference call and webcast for shareholders and analysts on Wednesday, February 2, 2022 at 9:30 a.m. Chicago, Illinois time. The conference call can be viewed by calling (844) 413-1780 using participant code 1083597. The conference call will be webcast simultaneously at www.bankfinancial.com, “Investor Relations” page. For those unable to participate in the conference call, the webcast will be archived until Wednesday, February 23, 2022 on our website.
BankFinancial Corporation is the holding company of BankFinancial, NA, a national bank providing banking, wealth management and trust services to individuals, families and businesses in the Chicago metropolitan area and on a regional or national basis for trade finance , equipment financing, commercial real estate finance and cash management professional clients. Common stock of BankFinancial Corporation trades on the Nasdaq Global Select Market under the symbol “BFIN”. Additional information can be found on the company’s website, www.bankfinancial.com.
This release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Various 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 see 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 referred to therein. Copies of these documents are available free of charge on the SEC’s website at www.sec.gov or on the BankFinancial website at www.bankfinancial.com. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them to reflect changes.
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