BankFinancial — Investor Presentation (April 2020)
21 slides from BankFinancial's investor presentation, Apr 21, 2020
Slide 1: 2020 Corporate Profile
BankFinancial” ———— ‘ Corporation 2020 Corporate Profile
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains, and the periodic and current reports we file with the SEC, press releases and other public stockholder communications of BankFinancial Corporation may contain forward-looking statements within the meaning of Section 21E of the Securities Exchang
Slide 3: Corporate Overview
Corporate Overview 1 Focus on Diversified Commercial Lending 2 Retail & Commercial Deposit Base 3 National Bank Charter 4 NASDAQ Global Markets: BFIN 3
Slide 4: Consolidated Balance Sheet Information
Consolidated Balance Sheet Information Total Assets $1.488 billion Total Loans $1.168 billion Total Deposits $1.285 billion Total Capital $174 million Tier 1 Capital $172 million Tier 1 Leverage Capital % 11.48% Common Tier 1 Risk-Based Capital % 16.48% Total Risk-Based Capital % 17.23% No outstandi
Slide 5: Branch Network
Branch Network North Libertyville South Libertyville Lincolnshire Deerfield Northbrook Banking Offices in Cook, Schaumburg Lake, DuPage, and Lincolnwood 19 Will Counties Lincoln Park Hyde Park Downers Grove Consecutive “Outstanding” Westmont Naperville 9 CRA Ratings Burr Ridge Chicago Ridge Calumet
Slide 6: Loan Portfolio Composition
Loan Portfolio Composition 4.94% 12.40% 11.46% Commercial Loans ($146MM) Commercial Leases ($273MM) Multi-Family Real Estate ($564MM) Non-Residential Real Estate ($135MM) Residential/Consumer ($58MM) 47.99% 23.21% Minimal Borrower Concentration – Top 5 Targeted Organic Loan Origination Loan Relation
Slide 7: Loan Portfolio Trends
Loan Portfolio Trends 12/31/19 12/31/14 5-Year (000’s) (000’s) CAGR% TARGETED LOAN TYPES Commercial Loans $145,714 $66,882 16.9% Commercial Leases $272,629 $217,143 4.7% Multi-Family $563,750 $480,349 3.3% SUBTOTAL $982,093 $764,374 5.1% OTHER LOAN TYPES Non-Residential Real Estate $134,674 $234,500
Slide 8: Top Commercial Loan Concentration by Industry
Top 5 Commercial Loan Concentration by Industry 9.13% 2.24% 2.33% Real Estate, Rental and Leasing ($755MM) 7.16% Health Care and Social Assistance ($129MM) Manufacturing ($80MM) Public Administration ($26MM) Educational Services ($25MM) 11.55% Other ($102MM) 67.59% Limited total exposure to Hospital
Slide 9: Multi-Family Loan Portfolio
Multi-Family Loan Portfolio Focus on Stabilized Class B & C Apartment Buildings 18% • Chicago MSA and selected geographic markets with strong macroeconomic and employment growth trends • “Rent By Necessity” / Affordable Housing tenants – no Class A luxury properties • Tenant base and geographic loca
Slide 10: Commercial & Industrial Loan Portfolio
Commercial & Industrial Loan Portfolio Chicago MSA Commercial Banking 17% • Focus on companies $2MM to $10MM in sales • Working capital, equipment, and owner-occupied CRE 34% • $45 million in total commitments with 54% utilization at 12/31/19 National Healthcare Lending • Working capital, equipment,
Slide 11: Equipment Finance Portfolio
Equipment Finance Portfolio Direct origination relationships with independent lessors throughout US, including several ELFA Top 25 Independent Lessors Typical structure is fully amortizing commercial equipment lease or financing agreement 51% 49% • Weighted average life of the portfolio is 1.08 year
Slide 12: Non-Residential Real Estate Loan Portfolio
Non-Residential Real Estate Loan Portfolio Top Three Portfolios – Non-Owner Occupied • Retail - $53MM • Mixed Use Building - $19MM 22% • Office Building - $13MM Strong Underwriting Metrics • Weighted Average DSCR – 2.00x • Weighted Average LTV – 49% Concentrated in Chicago MSA 78% No Significant Ten
Slide 13: 1-4 Family and Consumer Loan Portfolio
1 – 4 Family and Consumer Loan Portfolio Concentrated in Chicago MSA 3% Legacy Portfolio Status 19% • 68% decline in Residential / Home Equity loan portfolio balances since 2014 92% of the 1 – 4 Family Loans are 1st Liens 78% Asset Quality • 3.41% Past Due; 0.88% Nonaccrual at 12/31/19 1 – 4 Family
Slide 14: Loan Origination Priorities
Loan Origination Priorities 1 Commercial & Industrial/Healthcare • Chicago MSA commercial lending to small and lower-middle market companies • Working Capital finance to Equipment Finance lessors • Working Capital and Equipment finance to selected hospitals, healthcare professional practices, ambula
Slide 15: Asset Quality Metrics
Asset Quality Metrics NPA to Assets Non-Accrual Loans to Loans December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 0.50% 0.50% 0.40% 0.40% 0.30% 0.30% 0.20% 0.17% 0.20% 0.11% 0.10% 0.07% 0.10% 0.07% 0.00% 0.00% ALLL to Non-Accrual Loans Classified Assets as a % of December 31, 20
Slide 16: COVID-19 Qualified Loan Forbearance Programs
COVID-19 Qualified Loan Forbearance Programs 1 Limited Forbearance Program • Borrower executed an COVID-19 Impact Certification • Borrower pays all Interest & Escrow Payments on each scheduled due date via Automatic Payment System • Forbearance in effect for four (4) monthly payments. • All deferred
Slide 17: COVID-19 Update
COVID-19 Update Illinois: Multifamily • 0.54% Past Due; 0.00% Nonaccrual at 03/31/20 • CARES Act 4013 Modifications – 21 / $11.9MM Other: • 0.00% Past Due; 0.00% Nonaccrual at 03/31/20 • CARES Act 4013 Modifications – 7 / $7.6MM • 0.22% Past Due; 0.22% Nonaccrual at 03/31/20 Non-Residential Real Est
Slide 18: Funding Composition
Funding Composition 0.0% 16.4% Retail: Demand ($121MM) Demand ($211MM) Interest Bearing Transaction ($567MM) 31.3% Certificates of Deposit ($337MM) Interest-Bearing Transaction ($672MM) Commercial: Demand ($90MM) Interest Bearing Transaction ($105MM) Certificates of Deposit ($402MM) Other: Wholesale
Slide 19: Operating Performance
Operating Performance Net Income (in millions) / Earnings Per Share (Diluted) Net Interest Margin • Stability reflects low-risk asset generation and $25.0 $1.20 strong asset quality $1.11 • Neutral Interest Rate Risk posture $1.00 $20.0 $19.3 Non-Interest Income $0.75 $0.80 • No reliance on resident
Slide 20: 2020 Priorities
2020 Priorities Continue growth & diversification of loan portfolio • Expanded capabilities and capacity in Commercial & Industrial Lending and Equipment Finance now enable additional yield support/enhancement • Continue progress towards goal of 50% Commercial & Industrial / 50% Multi-Family and CRE
Slide 21: Total Shareholder Return Policy Elements
Total Shareholder Return Policy Elements Dividends • 2019 Total Dividends - $0.40 per share • 3.06% yield based on $13.08 per share price as of December 31, 2019 Share Repurchases • 39% of common shares repurchased since 2005 IPO • 2020: As of December 31, 2019, there are 542,963 shares of common st